Unfortunately that a Linton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Linton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Linton will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Lease extensions in Linton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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.
In 2014 Caleb, came seriously close to the 80-year mark with the lease on his one bedroom flat in Linton. In buying his home two decades ago, the lease term was of no concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Caleb was able to extend his lease just under the wire last July. Caleb and the freeholder eventually agreed on an amount of £5,500 . If the lease had descended below 80 years, the amount would have escalated by a minimum £975.
In 2011 we were phoned by Ms Amelia Alexander who, having bought a garden flat in Linton in April 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Linton with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 21 July 2081. Considering the 57 years left we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.
In 2014 we were phoned by Mr and Mrs. S Simon who, having owned a one bedroom apartment in Linton in September 2008. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Linton with an extended lease were worth £200,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 27 November 2101. Taking into account 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.