Lyndhurst leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Lyndhurst will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Lyndhurst with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 conveyancers 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 lawyer we work with provide it.
During the course of the last few months Kai, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Lyndhurst. Having purchased his property two decades ago, the lease term was of no concern. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Kai arranged for a lease extension at the eleventh hour last August. Kai and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £1,075.
In 2010 we were e-mailed by Mr and Mrs. K Moore who, having completed a ground floor apartment in Lyndhurst in March 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Lyndhurst with an extended lease were valued around £233,200. The average ground rent payable was £60 billed per annum. The lease ended on 25 August 2087. Taking into account 61 years remaining we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.
Mr and Mrs. N Walker acquired a one bedroom apartment in Lyndhurst in February 2009. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Lyndhurst with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 collected annually. The lease expiry date was on 19 September 2076. Taking into account 50 years remaining we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.