Lymm and Warburton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Lymm and Warburton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Lymm and Warburton you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Lymm and Warburton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Lymm and Warburton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lymm and Warburton valuers.
Last October Zachary, started to get near to the eighty-year threshold with the lease on his first floor flat in Lymm and Warburton. In buying his home 19 years ago, the length of the lease was of no significance. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Zachary extended the lease at the eleventh hour in May. Zachary and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slid to less than eighty years, the premium would have become more costly by a minimum £1,075.
Mr Jackson Patel took over the lease of a one bedroom apartment in Lymm and Warburton in May 2000. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar homes in Lymm and Warburton with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2104. Considering the 79 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Dr Ben Hall completed a one bedroom apartment in Lymm and Warburton in July 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Lymm and Warburton with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 billed yearly. The lease ended in 2093. Considering the 68 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.