The nearer a domestic lease in Budleigh Salterton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Budleigh Salterton will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Budleigh Salterton with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Budleigh Salterton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Budleigh Salterton valuers.
Off the back of protracted discussions with the freeholder of her one bedroom apartment in Budleigh Salterton, Lily initiated the lease extension process as the 80 year threshold was fast coming. The transaction completed in January 2015. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Ms Sophie Hernández who, having completed a studio flat in Budleigh Salterton in September 2011. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Budleigh Salterton with an extended lease were valued around £290,000. The average amount of ground rent was £45 billed quarterly. The lease terminated on 17 March 2098. Considering the 73 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
In 2011 we were contacted by Dr Eliot Roux who, having completed a purpose-built flat in Budleigh Salterton in May 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Budleigh Salterton with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £65 billed monthly. The lease finished on 12 June 2087. Considering the 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.