The re-sale value of a leasehold property in Lytham St Annes is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised prior to the eighty year mark. Statute enables Lytham St Annes qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further 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.
Leasehold residencies in Lytham St Annes with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | 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. |
| 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. |
The conveyancers that we work with handle Lytham St Annes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After protracted correspondence with the freeholder of her two bedroom flat in Lytham St Annes, Bethany commenced the lease extension process as the 80 year threshold was rapidly approaching. The lease extension completed in April 2005. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were called by Mrs Naomi Harris who, having completed a studio apartment in Lytham St Annes in February 1996. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative premises in Lytham St Annes with 100 year plus lease were valued about £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed in 2090. Having 65 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
Last Spring we were contacted by Mr and Mrs. U Ward , who completed a studio flat in Lytham St Annes in July 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Lytham St Annes with a long lease were worth £275,000. The average ground rent payable was £55 invoiced annually. The lease ran out in 2101. Having 76 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.