Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Lynton. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Lynton have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful deliberation before delaying your Lynton lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Lynton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her leasehold flat in Lynton, Ella started the lease extension process as the 80 year threshold was rapidly advancing. The transaction was finalised in June 2008. The landlord’s fees were restricted to approximately 700 pounds.
Dr Eliot Harris completed a studio apartment in Lynton in June 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Lynton with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish on 12 October 2076. Considering the 51 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2013 we were e-mailed by Mr and Mrs. N Edwards who, having took over the lease of a one bedroom flat in Lynton in June 1995. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Lynton with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed per annum. The lease ran out on 24 March 2096. Considering the 71 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.