Chances are that if you own a flat in Lymm and Warburton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lymm and Warburton,the lease extension lawyers that we work with will always be happy 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 Spring Samuel, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Lymm and Warburton. Having purchased his property 19 years ago, the unexpired term was of no relevance. Thankfully, he became aware that he would imminently be paying way over the odds for Extending the lease. Samuel was able to extend his lease just under the wire last January. Samuel and the freeholder in the end agreed on an amount of £5,000 . If the lease had descended to less than eighty years, the price would have gone up by at least £1,100.
Last Spring we were phoned by Mr and Mrs. G Davies , who bought a newly refurbished flat in Lymm and Warburton in August 2001. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Lymm and Warburton with a long lease were valued around £267,600. The average ground rent payable was £65 billed monthly. The lease lapsed on 19 June 2092. Having 67 years outstanding we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.
Last Autumn we were approach by Mr F King , who bought a basement apartment in Lymm and Warburton in June 2007. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical premises in Lymm and Warburton with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2081. Having 56 years left we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.