As the the remaining lease term of a Buckfastleigh and Dean residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Buckfastleigh and Dean will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Buckfastleigh and Dean with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Buckfastleigh and Dean,the lease extension lawyers that we work with will always be willing 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.
Following unsuccessful negotiations with the landlord of her two bedroom apartment in Buckfastleigh and Dean, Niamh initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was finalised in November 2005. The landlord’s fees were negotiated to below 550 pounds.
Last March we were phoned by Dr J Adams , who owned a one bedroom flat in Buckfastleigh and Dean in March 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative premises in Buckfastleigh and Dean with a long lease were worth £171,800. The average amount of ground rent was £55 collected yearly. The lease ended on 27 September 2076. Given that there were 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
Last June we were e-mailed by Mrs U Anderson , who acquired a newly refurbished flat in Buckfastleigh and Dean in September 2006. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparative flats in Buckfastleigh and Dean with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected annually. The lease expired in 2096. Given that there were 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.