The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Crediton may extend the lease for an additional ninety years in accordance with statute. Please think carefully before delaying your Crediton lease extension. Postponing that expense today simply increases the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Crediton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ollie was the the leasehold proprietor of a 2 bedroom flat in Crediton on the market with a lease of just over 59 years unexpired. Ollie on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. I Simon moved into a one bedroom flat in Crediton in January 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Crediton with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out on 2 November 2097. Having 72 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last Christmas we were contacted by Dr Sophia Gray , who moved into a garden apartment in Crediton in April 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Crediton with an extended lease were valued about £256,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease came to a finish in 2077. Having 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of expenses.