The market value of a leasehold property in Lynton depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation enables Lynton qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Lynton with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Lynton can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 procuring Lynton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas owned a high value flat in Lynton being sold with a lease of a little over 72 years left. Lucas on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last month we were contacted by Dr Reuben Lefebvre , who purchased a first floor flat in Lynton in February 2001. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar homes in Lynton with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced yearly. The lease terminated on 28 February 2083. Having 57 years outstanding we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.
Mr and Mrs. N Bennett completed a first floor apartment in Lynton in October 1995. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Lynton with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease end date was in 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.