Lyndhurst leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Lyndhurst will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a conversion flat in Lyndhurst being sold with a lease of a few days over sixty years outstanding. Dylan informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Spring we were called by Mr and Mrs. P Miller , who took over the lease of a purpose-built flat in Lyndhurst in October 2000. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar properties in Lyndhurst with a long lease were worth £216,000. The average ground rent payable was £60 billed yearly. The lease came to a finish on 5 March 2084. Given that there were 58 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Mr and Mrs. J André completed a purpose-built apartment in Lyndhurst in July 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Lyndhurst with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2104. Taking into account 78 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.