It’s an underpublicised certainty that a Paignton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Paignton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Paignton will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Paignton can be a difficult process. We recommend you obtain guidance 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 a wealth of experience procuring Paignton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her garden apartment in Paignton, Amber started the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was finalised in October 2007. The freeholder’s charges were negotiated to about 550 GBP.
In 2009 we were called by Ms P Ali who, having moved into a basement flat in Paignton in August 1998. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Paignton with an extended lease were worth £174,200. The average amount of ground rent was £55 collected annually. The lease expired on 25 June 2077. Taking into account 51 years left we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.
Mr and Mrs. K Nguyen acquired a purpose-built flat in Paignton in January 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical flats in Paignton with a long lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2097. Given that there were 71 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.