Lynton leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Lynton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Lynton with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Lynton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lynton valuers.
Ryan was the the leasehold proprietor of a 2 bedroom apartment in Lynton being marketed with a lease of just over fifty eight years unexpired. Ryan informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Mr and Mrs. C Jones who, having was assigned a lease of a garden apartment in Lynton in May 2011. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Lynton with an extended lease were valued about £300,000. The average ground rent payable was £50 billed quarterly. The lease termination date was on 22 August 2102. Having 76 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2012 we were e-mailed by Mr and Mrs. W James who, having completed a basement flat in Lynton in August 1997. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative homes in Lynton with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2091. Having 65 years as a residual term we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.