Lynton 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. The majority of owners of residential leasehold property in Lynton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lynton you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Lynton with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Lynton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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.
Kian owned a high value apartment in Lynton on the market with a lease of fraction over 61 years left. Kian on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Spring we were phoned by Mr and Mrs. N Petit , who was assigned a lease of a basement apartment in Lynton in April 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Lynton with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 billed quarterly. The lease end date was in 2094. Given that there were 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2013 we were called by Mr Edward Simon who, having was assigned a lease of a ground floor apartment in Lynton in October 2008. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparative premises in Lynton with an extended lease were valued around £216,000. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2083. Given that there were 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.