It’s an underpublicised certainty that a Lynmouth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Lynmouth property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. Most flat owners in Lynmouth will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Lynmouth with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘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 reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lynmouth can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Lynmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George was the the leasehold owner of a studio flat in Lynmouth on the market with a lease of fraction over fifty eight years unexpired. George informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Dr Alicia Michel owned a first floor apartment in Lynmouth in June 2000. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Lynmouth with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 billed monthly. The lease ran out on 12 October 2085. Given that there were 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Dr T Fournier purchased a garden flat in Lynmouth in March 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative flats in Lynmouth with an extended lease were valued about £250,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 8 October 2096. Taking into account 70 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.