Barnstaple leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Barnstaple will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
Lender | Requirement |
---|---|
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. |
Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Halifax | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you enhanced control over the value of your Barnstaple leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her studio apartment in Barnstaple, Rebecca commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The legal work was concluded in November 2008. The landlord’s charges were restricted to a tad over six hundred pounds.
Last October we were phoned by Mr and Mrs. N Allen , who took over the lease of a purpose-built flat in Barnstaple in November 2003. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Barnstaple with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2087. Considering the 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.
Last Autumn we were called by Dr Felix Moore , who purchased a purpose-built flat in Barnstaple in July 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar premises in Barnstaple with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 16 August 2097. Taking into account 73 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.