Lyndhurst leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Lyndhurst enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lyndhurst you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Lyndhurst leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with handle Lyndhurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Hugo, started to get close to the eighty-year threshold with the lease on his leasehold flat in Lyndhurst. In buying his flat 19 years ago, the lease term was of no relevance. Luckily, he realised he needed to take action soon on a lease extension. Hugo extended the lease at the eleventh hour last July. Hugo and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,125.
Last May we were phoned by Mr and Mrs. Y Roberts , who took over the lease of a first floor flat in Lyndhurst in June 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Lyndhurst with a long lease were worth £191,400. The average ground rent payable was £55 invoiced monthly. The lease expiry date was on 8 October 2080. Given that there were 54 years unexpired we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.
Last Summer we were called by Dr Gabriel Lefèvre , who acquired a one bedroom flat in Lyndhurst in September 2005. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Lyndhurst with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected every twelve months. The lease ended on 16 February 2100. Taking into account 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.