Lytham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Lytham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lytham you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Off the back of protracted negotiations with the freeholder of her first floor flat in Lytham, Georgia commenced the lease extension process as the eighty year deadline was fast coming. The lease extension was concluded in January 2007. The landlord’s fees were kept to an absolute minimum.
Dr L González completed a basement apartment in Lytham in May 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Lytham with an extended lease were valued about £256,600. The average ground rent payable was £60 invoiced quarterly. The lease elapsed on 24 October 2078. Having 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.
In 2013 we were approached by Mrs E Stewart who, having owned a one bedroom apartment in Lytham in August 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Lytham with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 8 April 2089. Given that there were 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.