When it comes to residential leasehold property in Lytham, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Lytham with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the current legislation the landlord can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Lytham with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lytham can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Lytham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the landlord of her leasehold flat in Lytham, Grace started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in July 2009. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. U Thomas owned a newly refurbished flat in Lytham in February 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Lytham with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 billed monthly. The lease finished in 2096. Considering the 71 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Last month we were approach by Ms Zoe Cook , who was assigned a lease of a ground floor apartment in Lytham in January 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Lytham with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed yearly. The lease ended in 2076. Taking into account 51 years left we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.