With a residential leasehold property in Budleigh Salterton, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Budleigh Salterton with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Budleigh Salterton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her first floor apartment in Budleigh Salterton, Alexandra started the lease extension process as the 80 year mark was quickly advancing. The transaction was concluded in March 2015. The landlord’s costs were negotiated to slightly above 550 pounds.
In 2013 we were called by Mr Aarav Clarke who, having moved into a recently refurbished flat in Budleigh Salterton in May 1995. The question was if we could approximate the premium would be for a 90 year lease extension. Similar homes in Budleigh Salterton with an extended lease were valued around £265,200. The average ground rent payable was £65 collected monthly. The lease came to a finish on 23 February 2092. Having 66 years remaining we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus costs.
In 2009 we were contacted by Mrs Amy Moreau who, having acquired a studio apartment in Budleigh Salterton in October 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Budleigh Salterton with a long lease were valued about £198,800. The average amount of ground rent was £55 collected yearly. The lease ran out on 8 July 2081. Given that there were 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.