There is no doubt about it a leasehold flat or house in Paignton is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact that being said 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 termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Paignton will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Paignton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Paignton valuers.
Hunter was the the leasehold proprietor of a 2 bedroom flat in Paignton on the market with a lease of a little over 61 years left. Hunter informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Autumn we were phoned by Dr Isabella Roux , who purchased a first floor apartment in Paignton in November 2012. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Paignton with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2106. Having 80 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
In 2011 we were contacted by Dr E Lambert who, having bought a garden apartment in Paignton in November 1997. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Paignton with 100 year plus lease were worth £275,000. The average ground rent payable was £45 invoiced yearly. The lease end date was on 5 February 2095. Given that there were 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.