It’s an underpublicised certainty that a Linton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Linton property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Linton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Linton with over 100 years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Linton,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 in-depth market knowledge and the close ties they enjoy with Linton valuers.
Jason was the the leasehold proprietor of a high value apartment in Linton on the market with a lease of just over sixty years left. Jason on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. M Bell , who was assigned a lease of a newly refurbished apartment in Linton in January 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Linton with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expired in 2105. Given that there were 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2009 we were approached by Mrs Hollie Young who, having took over the lease of a one bedroom apartment in Linton in September 1996. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Linton with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2094. Taking into account 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.