For anyone whose Lymm flat is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Lymm,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lymm valuers.
In the wake of 6 months of protracted correspondence with the freeholder of her garden apartment in Lymm, Kate initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in May 2008. The freeholder’s costs were restricted to slightly above 550 pounds.
In 2014 we were called by Ms Emma Collins who, having completed a purpose-built apartment in Lymm in May 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar properties in Lymm with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed per annum. The lease ran out in 2091. Given that there were 66 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mrs Y Hill moved into a first floor apartment in Lymm in March 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Lymm with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 15 February 2102. Given that there were 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.