The value of Lynton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold premises in Lynton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Lynton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Lynton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph owned a high value apartment in Lynton being marketed with a lease of a little over 59 years unexpired. Joseph informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last January we were called by Mr and Mrs. O Roux , who bought a purpose-built flat in Lynton in June 2003. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical properties in Lynton with an extended lease were in the region of £181,600. The average ground rent payable was £55 billed per annum. The lease end date was on 28 August 2078. Taking into account 52 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.
Last September we were approach by Mr C Bennett , who moved into a one bedroom apartment in Lynton in September 2001. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Lynton with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 26 October 2098. Taking into account 72 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.