The value of Budleigh Salterton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is below than eighty years
Leasehold properties in Budleigh Salterton with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | 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. |
Lease extensions in Budleigh Salterton can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Budleigh Salterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a studio flat in Budleigh Salterton being sold with a lease of a little over 59 years unexpired. Sebastian on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert advice and secured an acceptable resolution informally and sell the flat.
In 2011 we were approached by Mr Arthur Campbell who, having purchased a one bedroom apartment in Budleigh Salterton in January 2004. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Budleigh Salterton with a long lease were in the region of £191,400. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2079. Taking into account 54 years remaining we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including professional charges.
In 2010 we were phoned by Mr F Roux who, having acquired a purpose-built flat in Budleigh Salterton in November 2007. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative premises in Budleigh Salterton with an extended lease were worth £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish in 2099. Having 74 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.