Lytham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Lytham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Lytham you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Lytham flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Lytham with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Lytham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jackson, started to get near to the 80-year threshold with the lease on his ground floor flat in Lytham. In buying his flat two decades ago, the length of the lease was of little relevance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Jackson arranged for a lease extension at the eleventh hour in January. Jackson and the freeholder in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £875.
Mr V Laurent owned a ground floor flat in Lytham in June 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Lytham with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 11 May 2091. Having 66 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2012 we were contacted by Dr A Rogers who, having took over the lease of a basement flat in Lytham in February 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Lytham with a long lease were valued about £275,000. The mid-range ground rent payable was £55 collected monthly. The lease termination date was on 13 November 2102. Taking into account 77 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.