The re-sale value of a leasehold property in Tiverton depends on how long the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised prior to the eighty year mark. Leasehold Reform legislation enables Tiverton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Tiverton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Tiverton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
David was the the leasehold proprietor of a conversion flat in Tiverton on the market with a lease of just over 72 years left. David informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were contacted by Dr Nathaniel Ramírez who, having completed a one bedroom apartment in Tiverton in February 2005. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable properties in Tiverton with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 23 June 2092. Considering the 67 years left we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including costs.
Ms F Edwards owned a first floor flat in Tiverton in July 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Tiverton with 100 year plus lease were worth £201,200. The average ground rent payable was £55 invoiced monthly. The lease ended on 8 October 2081. Taking into account 56 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.