The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lytham St Annes may extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Lytham St Annes lease extension. Postponing that expense now simply increases the price you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Lytham St Annes can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 Lytham St Annes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a 2 bedroom apartment in Lytham St Annes being marketed with a lease of a few days over sixty years unexpired. Leon informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. T Jackson who, having owned a studio flat in Lytham St Annes in October 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Lytham St Annes with an extended lease were worth £235,200. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2091. Considering the 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Ms Molly Lewis was assigned a lease of a one bedroom flat in Lytham St Annes in September 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Lytham St Annes with an extended lease were valued around £275,000. The average amount of ground rent was £55 billed monthly. The lease finished on 23 August 2102. Taking into account 77 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.