Buckfastleigh leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Buckfastleigh will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Buckfastleigh with in excess of one hundred years unexpired 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Buckfastleigh,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 valuers.
18 months ago Leo, came seriously near to the 80-year threshold with the lease on his studio flat in Buckfastleigh. Having bought his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Leo arranged for a lease extension at the eleventh hour in January. Leo and the landlord subsequently settled on the final figure of £5,500 . If the lease had slid lower than eighty years, the premium would have increased by a minimum £975.
Last Winter we were e-mailed by Mr Omar Carter , who owned a first floor flat in Buckfastleigh in January 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Buckfastleigh with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired on 22 September 2100. Taking into account 74 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Mr and Mrs. D Robinson owned a one bedroom apartment in Buckfastleigh in June 2004. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Buckfastleigh with a long lease were worth £243,000. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2089. Given that there were 63 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus costs.