Unfortunately that a Budleigh Salterton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Budleigh Salterton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Most leasehold owners in Budleigh Salterton will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Budleigh Salterton with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers 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.
Jack owned a high value flat in Budleigh Salterton being marketed with a lease of fraction over 61 years left. Jack informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2011 we were approached by Mr and Mrs. E López who, having bought a first floor flat in Budleigh Salterton in January 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Budleigh Salterton with a long lease were valued about £250,400. The mid-range ground rent payable was £65 billed yearly. The lease ran out on 20 August 2090. Having 64 years remaining we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.
In 2009 we were phoned by Ms Jennifer David who, having completed a one bedroom flat in Budleigh Salterton in May 2012. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable premises in Budleigh Salterton with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed annually. The lease concluded on 1 April 2079. Considering the 53 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.