With a domestic leasehold property in Lyndhurst, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Lyndhurst with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has fewer than 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Lyndhurst with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Lyndhurst,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lyndhurst valuers.
In the wake of 9 months of lengthy correspondence with the landlord of her garden apartment in Lyndhurst, Emma initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension was finalised in November 2006. The freeholder’s charges were negotiated to below 500 pounds.
Last year we were phoned by Ms G White , who purchased a ground floor flat in Lyndhurst in July 1995. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable properties in Lyndhurst with an extended lease were worth £200,000. The average ground rent payable was £50 billed quarterly. The lease ran out in 2103. Taking into account 77 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Dr L Morel bought a ground floor apartment in Lyndhurst in February 1995. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Lyndhurst with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired in 2092. Given that there were 66 years remaining we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including fees.