Budleigh Salterton leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Budleigh Salterton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Budleigh Salterton with in excess of 100 years left 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| TSB | |
| Yorkshire Building Society |
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 lawyer we work with provide it.
Jasper was the the leasehold owner of a studio apartment in Budleigh Salterton being sold with a lease of a few days over 61 years outstanding. Jasper on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2013 we were contacted by Mr and Mrs. D Michel who, having owned a garden flat in Budleigh Salterton in April 2005. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar residencies in Budleigh Salterton with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 collected quarterly. The lease terminated on 22 May 2078. Given that there were 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
In 2010 we were approached by Dr Nathaniel Wilson who, having completed a studio apartment in Budleigh Salterton in March 1996. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable properties in Budleigh Salterton with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease ran out in 2098. Having 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.