Linton residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Linton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Jacob, started to get near to the 80-year mark with the lease on his garden flat in Linton. Having purchased his flat 18 years ago, the length of the lease was of little concern. Thankfully, he noticed he needed to take action soon on a lease extension. Jacob extended the lease just ahead of time last January. Jacob and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,050.
Last Christmas we were phoned by Mr Ryan Jones , who bought a basement apartment in Linton in July 2003. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar residencies in Linton with a long lease were valued about £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 15 January 2101. Given that there were 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Mrs T Jones completed a one bedroom apartment in Linton in February 2009. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Linton with a long lease were in the region of £250,400. The average ground rent payable was £65 billed per annum. The lease terminated on 20 February 2090. Given that there were 64 years remaining we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.