There is no doubt about it a leasehold flat or house in Ivybridge is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Ivybridge will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ivybridge can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Ivybridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli was the the leasehold owner of a conversion apartment in Ivybridge on the market with a lease of a few days over 59 years remaining. Eli on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs Daisy García took over the lease of a one bedroom flat in Ivybridge in September 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Ivybridge with a long lease were valued about £300,000. The average ground rent payable was £50 billed yearly. The lease ran out on 19 June 2101. Having 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Last June we were called by Dr Phoebe Bailey , who purchased a recently refurbished apartment in Ivybridge in April 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Ivybridge with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced yearly. The lease ran out on 10 February 2090. Considering the 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.