Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Babbacombe. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Babbacombe have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Babbacombe lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Babbacombe can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 procuring Babbacombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max owned a high value apartment in Babbacombe on the market with a lease of a few days over 59 years unexpired. Max on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2013 we were contacted by Mr G Bell who, having was assigned a lease of a one bedroom flat in Babbacombe in January 2008. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar residencies in Babbacombe with a long lease were worth £173,800. The average ground rent payable was £65 collected quarterly. The lease lapsed in 2081. Taking into account 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
Last month we were phoned by Mr and Mrs. K Díaz , who was assigned a lease of a purpose-built apartment in Babbacombe in January 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Babbacombe with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2092. Taking into account 66 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.