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 as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Lymm and Warburton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lymm and Warburton you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Lymm and Warburton leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Lymm and Warburton with over one hundred years left on the lease are often 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 freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
Lease extensions in Lymm and Warburton can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Lymm and Warburton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold owner of a 2 bedroom apartment in Lymm and Warburton on the market with a lease of just over 61 years remaining. Mason on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2013 we were e-mailed by Mr Adam Williams who, having took over the lease of a garden flat in Lymm and Warburton in June 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Lymm and Warburton with a long lease were worth £189,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Last year we were contacted by Mrs J Torres , who bought a recently refurbished flat in Lymm and Warburton in November 1998. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Lymm and Warburton with an extended lease were worth £290,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2099. Taking into account 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.