It’s a harsh certainty that a Lytham St Annes residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Lytham St Annes property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Lytham St Annes will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
18 months ago John, started to get near to the 80-year mark with the lease on his studio flat in Lytham St Annes. Having purchased his flat 19 years ago, the length of the lease was of minimal concern. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. John arranged for a lease extension just ahead of time last September. John and the freeholder via the managing agents in the end settled on sum of £6,000 . If the lease had dipped below 80 years, the premium would have gone up by at least £875.
In 2014 we were called by Mr Finn Morris who, having took over the lease of a one bedroom flat in Lytham St Annes in September 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Lytham St Annes with an extended lease were valued about £186,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease lapsed in 2084. Having 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus expenses.
Mr and Mrs. E Evans took over the lease of a first floor apartment in Lytham St Annes in August 1996. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar homes in Lytham St Annes with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 17 May 2095. Considering the 69 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.