As the the remaining lease term of a Lynmouth domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Lynmouth will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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 greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lynmouth can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 dealing with Lynmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli was the the leasehold proprietor of a 2 bedroom apartment in Lynmouth being sold with a lease of just over 59 years unexpired. Eli on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last February we were contacted by Mrs J Harris , who completed a recently refurbished flat in Lynmouth in January 2006. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Lynmouth with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed every twelve months. The lease ran out in 2076. Taking into account 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.
Last year we were called by Mr Tommy Robinson , who took over the lease of a garden flat in Lynmouth in April 2011. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Lynmouth with an extended lease were in the region of £210,600. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 1 November 2087. Given that there were 62 years left we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.