Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Lyndhurst. Clearly, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Lyndhurst have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give due deliberation before delaying your Lyndhurst lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Lyndhurst with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | 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. |
Lease extensions in Lyndhurst can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Lyndhurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Stanley, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Lyndhurst. In buying his flat 18 years ago, the length of the lease was of minimal importance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Stanley extended the lease at the eleventh hour last May. Stanley and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If the lease had dipped below eighty years, the premium would have become more costly by at least £1,150.
Last Spring we were called by Mr Jamie Lee , who completed a studio apartment in Lyndhurst in March 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Lyndhurst with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
Last October we were approach by Ms Y González , who was assigned a lease of a studio apartment in Lyndhurst in February 2004. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar premises in Lyndhurst with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2078. Having 52 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.