For anyone whose Babbacombe home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Babbacombe can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Babbacombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Toby, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Babbacombe. In buying his flat twenty years ago, the length of the lease was of no interest. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Toby arranged for a lease extension just under the wire last September. Toby and the landlord eventually agreed on sum of £5,500 . If the lease had descended to less than 80 years, the premium would have become more costly by a minimum £900.
Last Summer we were contacted by Dr Archie Campbell , who moved into a one bedroom flat in Babbacombe in June 2010. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparable flats in Babbacombe with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2103. Given that there were 77 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
Mr R Turner was assigned a lease of a one bedroom flat in Babbacombe in February 2010. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Babbacombe with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded on 11 April 2083. Taking into account 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.