Linton 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 your lease becomes more expensive. It is the case that most Linton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Linton you really ought to investigate if your lease has between seventy and 90 years left. There are good reasons why a Linton leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Linton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her basement flat in Linton, Kelsey started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was finalised in April 2005. The landlord’s costs were negotiated to below 450 GBP.
In 2011 we were e-mailed by Mr N Garcia who, having acquired a ground floor apartment in Linton in April 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Linton with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2094. Considering the 69 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
Last Autumn we were approach by Dr S Turner , who completed a purpose-built flat in Linton in July 2009. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar homes in Linton with a long lease were worth £216,000. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed on 18 September 2083. Given that there were 58 years as a residual term we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.