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. It is the case that most Lynton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Lynton you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Lynton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Lynton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lynton valuers.
Harvey owned a conversion flat in Lynton on the market with a lease of a little over sixty years remaining. Harvey on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2014 we were e-mailed by Mr and Mrs. U Davis who, having took over the lease of a purpose-built apartment in Lynton in July 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Lynton with an extended lease were in the region of £171,800. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2076. Taking into account 50 years remaining we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.
Last year we were contacted by Mrs Amy Laurent , who acquired a first floor flat in Lynton in January 2009. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Lynton with a long lease were worth £280,000. The average ground rent payable was £45 invoiced yearly. The lease finished on 19 September 2096. Considering the 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.