I purchased a freehold property in Lynton but still pay rent, why is this and what is this?

It’s unusual for properties in Lynton and has limited impact for conveyancing in Lynton but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.

Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges have existed for hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.

Previous rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.

Various internet forums that I have come across warn that are the number one cause of delay in Lynton conveyancing transactions. Is this right?

The Council of Property Search Organisations (CoPSO) has noted the findings of a review by MoveWithUs that conveyancing searches do not feature within the most frequent causes of hindrances in the conveyancing process. Searches are unlikely to feature in any delay in conveyancing in Lynton.

Are there restrictive covenants that are commonly picked up as part of conveyancing in Lynton?

Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the process of conveyancing in Lynton. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’

My company is planning to lease a unit on a shopping parade. Can you recommend solicitors offering fixed costs for commercial conveyancing in Lynton for less than £1,200?

We are happy to recommend firms who have well rounded knowledge of commercial conveyancing in Lynton, including the sale and acquisition of businesses as well as simply premises. If you are intending to buy or lease a shop, pub, restaurant, office, retail unit or a whole business we will put you in touch with the right lawyer. Regarding the charges this will depend on the structure and terms of the deal. Please provide us with your contact information or email us so that we may furnish you with a fixed commercial conveyancing quote.

I am tempted by the attractive purchase price for a couple of apartments in Lynton which have in the region of 50 years left on the leases. Should I regard a short lease as a deal breaker?

There is no doubt about it. A leasehold apartment in Lynton is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the value of the property. For most purchasers and banks, leases with under eighty years become less and less marketable. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Lynton conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.

I purchased a studio flat in Lynton, conveyancing was carried out July 1999. Can you please calculate a probable premium for a statutory lease extension? Comparable flats in Lynton with an extended lease are worth £191,000. The ground rent is £55 invoiced annually. The lease ceases on 21st October 2077

With just 53 years remaining on your lease we estimate the premium for your lease extension to range between £27,600 and £31,800 plus costs.

The figure above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure without more comprehensive investigations. Do not use this information in a Notice of Claim or as an informal offer. There may be other issues that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. You should not move forward placing reliance on this information before getting professional advice.