Lymm 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 your lease becomes more expensive. The majority of owners of residential leasehold property in Lymm enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lymm you must see if your lease has between seventy and ninety years remaining. There are good reasons why a Lymm flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold premises in Lymm with in excess of 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Lymm,the lease extension lawyers that we work with will always be willing 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.
Last Christmas Elijah, started to get close to the 80-year mark with the lease on his one bedroom flat in Lymm. Having bought his flat two decades ago, the lease term was of no importance. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Elijah extended the lease just under the wire last April. Elijah and the landlord subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £975.
In 2014 we were e-mailed by Mr and Mrs. S Martínez who, having bought a studio apartment in Lymm in November 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Lymm with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 billed per annum. The lease expired on 21 April 2078. Given that there were 55 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.
In 2012 we were approached by Mrs Samantha Fournier who, having bought a studio apartment in Lymm in February 2003. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative premises in Lymm with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 17 June 2089. Taking into account 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.