The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Teignmouth may extend the lease for a further 90 years in accordance with statute. Do think carefully before delaying your Teignmouth lease extension. Shelving that expense today simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Teignmouth with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you increased control over the value of your Teignmouth leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Austin, started to get near to the eighty-year mark with the lease on his ground floor apartment in Teignmouth. Having purchased his flat two decades ago, the length of the lease was of little significance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Austin was able to extend his lease just in the nick of time in September. Austin and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,150.
Last February we were e-mailed by Mr and Mrs. T Díaz , who purchased a basement flat in Teignmouth in August 2006. The question was if we could approximate the price would be for a ninety year lease extension. Similar flats in Teignmouth with a long lease were valued around £280,000. The mid-range ground rent payable was £45 billed annually. The lease expiry date was on 15 August 2095. Considering the 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
Mrs T Scott acquired a one bedroom flat in Teignmouth in April 1999. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Teignmouth with an extended lease were worth £223,400. The average amount of ground rent was £60 invoiced yearly. The lease terminated in 2084. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of fees.