The market value of a leasehold property in Linton is impacted by how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Current legislation enables Linton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Linton with over 100 years left 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Linton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Linton valuers.
Jamie was the the leasehold proprietor of a high value apartment in Linton being marketed with a lease of a little over fifty eight years left. Jamie on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2009 we were phoned by Mr and Mrs. O Watson who, having moved into a studio apartment in Linton in November 1997. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable flats in Linton with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease expiry date was on 9 March 2089. Given that there were 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus costs.
In 2009 we were e-mailed by Dr R Anderson who, having was assigned a lease of a one bedroom flat in Linton in January 1997. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar flats in Linton with an extended lease were worth £189,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2078. Given that there were 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.