The market value of Lyndhurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Lyndhurst with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Lyndhurst,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lyndhurst valuers.
Last Spring Edward, came precariously close to the eighty-year threshold with the lease on his one bedroom flat in Lyndhurst. Having purchased his flat 19 years previously, the unexpired term was of no bearing. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Edward was able to extend his lease just under the wire last April. Edward and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dipped lower than 80 years, the sum would have escalated by at least £1,125.
In 2010 we were approached by Dr Kirsty Johnson who, having acquired a purpose-built flat in Lyndhurst in February 2008. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar residencies in Lyndhurst with an extended lease were valued about £285,000. The average amount of ground rent was £45 collected monthly. The lease end date was in 2097. Having 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Dr N Johnson was assigned a lease of a ground floor apartment in Lyndhurst in June 2001. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Lyndhurst with a long lease were worth £233,200. The average amount of ground rent was £60 billed quarterly. The lease ended on 4 March 2086. Taking into account 61 years remaining we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of fees.