Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Lytham. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Lytham have the right to extend the lease for a further ninety years in accordance with legislation. Do give careful deliberation before delaying your Lytham lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Lytham with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Lytham 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.
Nathaniel was the the leasehold owner of a high value flat in Lytham being sold with a lease of a few days over 61 years left. Nathaniel on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord 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 increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were approach by Mr Thomas Davies , who owned a purpose-built apartment in Lytham in September 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar premises in Lytham with an extended lease were valued about £264,000. The average ground rent payable was £60 billed annually. The lease concluded on 19 July 2079. Given that there were 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including professional charges.
In 2013 we were approached by Mr and Mrs. B Brown who, having owned a purpose-built apartment in Lytham in March 1997. The question was if we could estimate the premium would be for a ninety year lease extension. Identical premises in Lytham with a long lease were worth £220,400. The average amount of ground rent was £45 billed yearly. The lease terminated in 2090. Having 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.