For those whose Lytham home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Lytham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lytham valuers.
Two years ago Ibrahim, came precariously near to the eighty-year mark with the lease on his leasehold flat in Lytham. Having bought his property two decades ago, the lease term was of minimal importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Ibrahim arranged for a lease extension just in the nick of time in September. Ibrahim and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had gone lower than eighty years, the amount would have gone up by a minimum £975.
Last Autumn we were contacted by Mrs Laura Lefebvre , who was assigned a lease of a newly refurbished apartment in Lytham in June 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Lytham with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease came to a finish in 2083. Considering the 57 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Dr Oliver Edwards was assigned a lease of a purpose-built apartment in Lytham in April 2003. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Lytham with an extended lease were valued about £245,000. The average amount of ground rent was £50 invoiced annually. The lease expired in 2094. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.