The market value of Lynton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold premises in Lynton with over one hundred years outstanding 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
Using our service will provide you enhanced control over the value of your Lynton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her one bedroom apartment in Lynton, Amy initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The lease extension was concluded in August 2008. The landlord’s fees were kept to an absolute minimum.
Last June we were called by Mr and Mrs. Y Fournier , who acquired a garden flat in Lynton in August 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Lynton with a long lease were worth £250,400. The average amount of ground rent was £65 collected yearly. The lease elapsed on 8 September 2090. Having 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.
Last month we were e-mailed by Dr Hugo Brown , who moved into a recently refurbished apartment in Lynton in January 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Lynton with a long lease were valued around £189,000. The average ground rent payable was £55 billed annually. The lease ran out in 2079. Considering the 53 years left we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.