Buckfastleigh and Dean leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Buckfastleigh and Dean will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Buckfastleigh and Dean with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Buckfastleigh and Dean can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 dealing with Buckfastleigh and Dean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Leon, started to get close to the eighty-year threshold with the lease on his garden flat in Buckfastleigh and Dean. Having purchased his home 19 years previously, the unexpired term was of no interest. Fortunately, he recognised he needed to take action soon on Extending the lease. Leon extended the lease at the eleventh hour in July. Leon and the landlord ultimately agreed on a premium of £5,000 . If the lease had slipped below 80 years, the sum would have escalated by a minimum £1,000.
Last year we were approach by Ms Lauren Edwards , who took over the lease of a studio apartment in Buckfastleigh and Dean in April 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Buckfastleigh and Dean with a long lease were worth £230,800. The average amount of ground rent was £60 billed per annum. The lease terminated on 12 July 2085. Given that there were 60 years outstanding we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including costs.
In 2011 we were e-mailed by Mr and Mrs. U Smith who, having completed a one bedroom flat in Buckfastleigh and Dean in May 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Buckfastleigh and Dean with an extended lease were valued around £210,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish in 2105. Given that there were 80 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.