The only way is down when it comes to Linton lease terms. Linton leaseholds that have a remaining term fewer than eighty years will drop in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold premises in Linton with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Linton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Toby, came dangerously close to the eighty-year threshold with the lease on his basement apartment in Linton. Having purchased his home two decades ago, the unexpired term was of no importance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Toby arranged for a lease extension just under the wire last July. Toby and the landlord eventually agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the premium would have become more costly by at least £1,100.
Last Autumn we were phoned by Mrs A Fournier , who moved into a recently refurbished flat in Linton in October 2011. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Linton with an extended lease were worth £213,600. The average amount of ground rent was £60 collected annually. The lease expired in 2083. Given that there were 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last Christmas we were approach by Mr and Mrs. D King , who moved into a first floor apartment in Linton in August 1996. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar residencies in Linton with a long lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 7 November 2103. Taking into account 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.