It’s a harsh certainty that a Buckfastleigh and Dean residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Buckfastleigh and Dean property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining slips under 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 the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Buckfastleigh and Dean will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Buckfastleigh and Dean,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buckfastleigh and Dean valuers.
16 months ago Freddie, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Buckfastleigh and Dean. Having bought his property two decades ago, the length of the lease was of no concern. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Freddie arranged for a lease extension just ahead of time in September. Freddie and the landlord eventually agreed on an amount of £5,500 . If the lease had slid lower than eighty years, the sum would have escalated by at least £1,150.
Dr Edward Sharif owned a ground floor apartment in Buckfastleigh and Dean in April 2008. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Buckfastleigh and Dean with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 8 September 2104. Considering the 79 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Mr and Mrs. E Cooper took over the lease of a one bedroom apartment in Buckfastleigh and Dean in June 2011. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Buckfastleigh and Dean with an extended lease were worth £275,000. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2093. Considering the 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.