Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Linton. Inevitably, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Linton have the legal entitlement to extend the lease for a further ninety years under legislation. Please give due attention before delaying your Linton lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
Leasehold properties in Linton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Linton can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Linton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Felix, started to get near to the 80-year threshold with the lease on his first floor apartment in Linton. Having bought his property two decades ago, the length of the lease was of minimal bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Felix extended the lease just under the wire last August. Felix and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,025.
In 2012 we were phoned by Mr and Mrs. H Brown who, having acquired a newly refurbished flat in Linton in March 1999. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Linton with an extended lease were valued about £285,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2097. Taking into account 71 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. L Anderson bought a basement flat in Linton in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Linton with a long lease were valued around £230,800. The mid-range ground rent payable was £60 invoiced annually. The lease expired on 23 October 2086. Given that there were 60 years unexpired we estimated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 not including expenses.