It’s an underpublicised truth that a Lytham residential lease is a wasting 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 property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under eighty 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. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Lytham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| Virgin |
The lawyers that we work with handle 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 conveyancer we work with provide it.
In recent months Noah, came perilously close to the 80-year threshold with the lease on his studio apartment in Lytham. In buying his flat two decades ago, the unexpired term was of little relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Noah extended the lease just under the wire last May. Noah and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had dropped below 80 years, the figure would have become more exhorbitant by a minimum £1,075.
Last Spring we were approach by Mr and Mrs. G Cox , who was assigned a lease of a studio flat in Lytham in June 2009. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Lytham with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended on 6 April 2102. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2012 we were approached by Dr S Cooper who, having took over the lease of a purpose-built apartment in Lytham in April 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Lytham with a long lease were worth £176,200. The average ground rent payable was £65 collected per annum. The lease termination date was on 5 September 2082. Considering the 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.