When it comes to long leasehold property in Lymm, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Lymm with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has under eighty years left, under the current Act the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Lymm leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joseph was the the leasehold owner of a high value apartment in Lymm on the market with a lease of a little over fifty eight years outstanding. Joseph informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured an acceptable deal informally and sell the property.
Last Summer we were approach by Mr and Mrs. J Brooks , who acquired a basement apartment in Lymm in July 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Lymm with a long lease were in the region of £166,400. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2079. Considering the 54 years remaining we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.
In 2012 we were contacted by Ms Shannon Dupont who, having acquired a one bedroom apartment in Lymm in September 1998. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Lymm with an extended lease were valued about £232,800. The average amount of ground rent was £45 collected yearly. The lease terminated in 2090. Taking into account 65 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.