Lynton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Lynton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Lynton you must see if your lease has between 70 and ninety years left. There are good reasons why a Lynton leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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. |
Lease extensions in Lynton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lynton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam owned a high value apartment in Lynton being sold with a lease of just over 61 years remaining. Sam informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2012 we were phoned by Mrs J Ramírez who, having took over the lease of a recently refurbished apartment in Lynton in February 2000. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative premises in Lynton with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2095. Given that there were 70 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Dr Ali Young acquired a purpose-built flat in Lynton in July 1997. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative residencies in Lynton with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed on 20 August 2084. Having 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including legals.