With a residential leasehold property in Lynmouth, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Anyone in Lynmouth with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has fewer than eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Lynmouth,the lease extension experts 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 Lynmouth valuers.
During the course of the last few months Kian, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Lynmouth. In buying his flat 18 years previously, the length of the lease was of minimal concern. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Kian extended the lease at the eleventh hour in March. Kian and the freeholder via the management company subsequently settled on an amount of £5,500 . If the lease had fallen to less than eighty years, the figure would have increased by at least £1,125.
Last year we were called by Mr and Mrs. E Baker , who bought a one bedroom apartment in Lynmouth in March 2002. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar flats in Lynmouth with a long lease were valued about £275,000. The average amount of ground rent was £55 invoiced yearly. The lease finished on 12 January 2103. Having 77 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Mr and Mrs. P Howard was assigned a lease of a first floor apartment in Lynmouth in November 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Lynmouth with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease finished on 26 February 2083. Given that there were 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.