Lynton leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Lynton will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Lynton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jake was the the leasehold proprietor of a high value flat in Lynton on the market with a lease of a little over sixty years unexpired. Jake informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to invoke his statutory right. Jake procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Winter we were phoned by Dr Benjamin Flores , who bought a first floor flat in Lynton in August 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Lynton with a long lease were worth £290,000. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2099. Taking into account 73 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2013 we were called by Dr Austin Morgan who, having purchased a purpose-built apartment in Lynton in May 1998. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Lynton with a long lease were worth £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus professional charges.