As the length of the unexpired term of a Paignton residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed 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 Paignton will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Paignton 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 lawyer we work with provide it.
After protracted correspondence with the freeholder of her ground floor flat in Paignton, Kayleigh started the lease extension process as the 80 year mark was quickly nearing. The lease extension completed in September 2007. The freeholder’s fees were negotiated to below 650 GBP.
Ms C David was assigned a lease of a basement flat in Paignton in July 2005. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical residencies in Paignton with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected annually. The lease finished on 15 February 2089. Considering the 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including costs.
In 2012 we were phoned by Mr O Bennett who, having purchased a recently refurbished apartment in Paignton in August 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical homes in Paignton with a long lease were worth £184,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 6 April 2078. Considering the 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.