The market value of a leasehold property in Buckfastleigh and Dean is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed prior to the eighty year cut off point. Statute entitles Buckfastleigh and Dean qualifying lessees to an additional term of 90 years in addition to the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Buckfastleigh and Dean with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Irrespective of whether you are a tenant or a freeholder in Buckfastleigh and Dean,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckfastleigh and Dean valuers.
Last year Connor, started to get near to the 80-year mark with the lease on his basement apartment in Buckfastleigh and Dean. In buying his home two decades ago, the lease term was of little relevance. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Connor extended the lease at the eleventh hour in September. Connor and the freeholder eventually settled on an amount of £6,000 . If the lease had slid below eighty years, the premium would have gone up by a minimum £1,075.
In 2012 we were approached by Mr Jonathan González who, having acquired a one bedroom apartment in Buckfastleigh and Dean in March 2005. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Buckfastleigh and Dean with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease termination date was on 18 September 2095. Considering the 69 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
Dr Toby Davis bought a first floor apartment in Buckfastleigh and Dean in October 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative properties in Buckfastleigh and Dean with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed on 17 June 2084. Having 58 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.