Chances are that if you own a flat in Paignton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as 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 are not acceptable. 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Paignton can be a difficult process. We recommend you procure guidance from a conveyancer 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 dealing with Paignton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a conversion apartment in Paignton on the market with a lease of a little over 59 years left. Matthew on an informal basis contacted his freeholder a well known London-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 rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last October we were approach by Dr William Ward , who moved into a recently refurbished flat in Paignton in April 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Paignton with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced annually. The lease termination date was in 2081. Considering the 55 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
Last Autumn we were approach by Dr Michael Morgan , who owned a purpose-built apartment in Paignton in January 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Paignton with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 collected annually. The lease ended in 2101. Having 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.