On the balance of probabilities where you own a flat in Paignton you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years unexpired lease term 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 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Paignton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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.
During the course of the last few months Tyler, came very close to the 80-year mark with the lease on his studio flat in Paignton. Having bought his flat 19 years previously, the length of the lease was of no importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Tyler was able to extend his lease just in the nick of time last July. Tyler and the freeholder ultimately agreed on a premium of £5,500 . If he not met the deadline, the sum would have increased by a minimum £850.
Dr Teddy Bailey purchased a one bedroom flat in Paignton in November 1996. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Paignton with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out on 4 June 2103. Given that there were 77 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. A Díaz completed a studio flat in Paignton in February 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Paignton with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease elapsed in 2092. Given that there were 66 years left we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.