Budleigh Salterton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Budleigh Salterton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Budleigh Salterton you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Budleigh Salterton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Budleigh Salterton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Muhammad, started to get close to the eighty-year mark with the lease on his basement flat in Budleigh Salterton. Having purchased his home two decades ago, the length of the lease was of little concern. by good luck, he became aware that he needed to take action soon on a lease extension. Muhammad extended the lease at the eleventh hour last August. Muhammad and the freeholder ultimately settled on the final figure of £6,000 . If the lease had dropped to less than 80 years, the figure would have gone up by a minimum £850.
Mr and Mrs. S Sánchez was assigned a lease of a one bedroom flat in Budleigh Salterton in October 2011. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable homes in Budleigh Salterton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease lapsed in 2104. Considering the 78 years left we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of costs.
Last month we were contacted by Mr and Mrs. J Girard , who bought a newly refurbished apartment in Budleigh Salterton in March 2003. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Budleigh Salterton with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 invoiced per annum. The lease finished on 14 May 2093. Having 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including professional charges.