Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lynmouth. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Lynmouth have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Lynmouth lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lynmouth can be a difficult process. We recommend you obtain guidance from a conveyancer 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 in-depth market knowledge 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.
In 2014 Finley, started to get close to the eighty-year mark with the lease on his leasehold apartment in Lynmouth. Having purchased his home two decades ago, the unexpired term was of little bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Finley extended the lease just under the wire last May. Finley and the landlord in the end agreed on sum of £6,000 . If he had missed the deadline, the premium would have escalated by at least £900.
Mr Aaron Jones took over the lease of a purpose-built apartment in Lynmouth in January 1996. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical premises in Lynmouth with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded in 2079. Having 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
Last year we were approach by Mr and Mrs. P Evans , who acquired a newly refurbished flat in Lynmouth in June 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Lynmouth with 100 year plus lease were valued around £227,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired on 10 September 2090. Considering the 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.