On the balance of probabilities if you own a flat in Lymm and Warburton you actually own a long leasehold interest over your property
Leasehold premises in Lymm and Warburton with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you increased control over the value of your Lymm and Warburton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted negotiations with the landlord of her basement apartment in Lymm and Warburton, Rebecca commenced the lease extension process as the 80 year threshold was fast nearing. The transaction was concluded in August 2008. The landlord’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Dr Henry Campbell who, having was assigned a lease of a basement flat in Lymm and Warburton in September 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Lymm and Warburton with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 22 October 2080. Taking into account 55 years unexpired we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
In 2014 we were phoned by Dr Georgina Clark who, having moved into a ground floor flat in Lymm and Warburton in September 2009. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Lymm and Warburton with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 collected yearly. The lease terminated on 18 July 2100. Having 75 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.