Ivybridge leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ivybridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Ivybridge with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Ivybridge 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.
Trailing lengthy negotiations with the freeholder of her ground floor flat in Ivybridge, Megan initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The lease extension was concluded in January 2012. The freeholder’s costs were restricted to below 550 GBP.
Mr and Mrs. G Stewart purchased a ground floor apartment in Ivybridge in March 1997. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar flats in Ivybridge with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease ended in 2086. Given that there were 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus expenses.
Mrs Morgan Morgan completed a basement flat in Ivybridge in May 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in Ivybridge with 100 year plus lease were valued around £171,800. The mid-range ground rent payable was £55 billed monthly. The lease terminated on 22 May 2075. Given that there were 50 years left we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.