The market value of a leasehold property in Lynmouth depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Lynmouth qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB |
Regardless of whether you are a tenant or a landlord in Lynmouth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lynmouth valuers.
During the course of the last few months Thomas, came precariously close to the 80-year threshold with the lease on his basement apartment in Lynmouth. Having purchased his property two decades ago, the unexpired term was of no relevance. Luckily, he became aware that he would soon be paying an inflated amount for a lease extension. Thomas extended the lease just under the wire last January. Thomas and the landlord in the end agreed on sum of £5,000 . If the lease had slipped lower than eighty years, the price would have escalated by at least £1,025.
In 2013 we were called by Dr Eli Jackson who, having completed a one bedroom apartment in Lynmouth in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Lynmouth with a long lease were worth £270,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2101. Considering the 75 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Mr C Robinson was assigned a lease of a ground floor flat in Lynmouth in March 2005. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Lynmouth with 100 year plus lease were valued about £168,800. The average amount of ground rent was £60 invoiced monthly. The lease finished on 27 February 2081. Considering the 55 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.