The nearer a residential lease in Lynton gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Lynton will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Lynton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lynton valuers.
Following lengthy correspondence with the landlord of her studio apartment in Lynton, Hollie commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was concluded in September 2008. The landlord’s costs were restricted to less than six hundred pounds.
In 2012 we were contacted by Mr and Mrs. S Parker who, having took over the lease of a garden flat in Lynton in June 2002. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Lynton with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2101. Taking into account 75 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Winter we were phoned by Mrs B Anderson , who acquired a studio flat in Lynton in May 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Lynton with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 7 March 2090. Considering the 64 years left we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including legals.