As the the remaining lease term of a Babbacombe domestic lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Babbacombe will meet the qualifying criteria; however a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Babbacombe with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Babbacombe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Babbacombe valuers.
Owen was the the leasehold proprietor of a conversion flat in Babbacombe on the market with a lease of a few days over fifty eight years outstanding. Owen on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. I Morel who, having owned a newly refurbished apartment in Babbacombe in September 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Babbacombe with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease lapsed in 2097. Taking into account 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last year we were e-mailed by Dr Charlotte Martin , who bought a basement apartment in Babbacombe in March 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Babbacombe with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2077. Having 53 years remaining we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including legals.