Budleigh Salterton leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Flat owners in Budleigh Salterton will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Budleigh Salterton with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Last Christmas Nathan, came very close to the eighty-year threshold with the lease on his one bedroom apartment in Budleigh Salterton. Having purchased his home 19 years ago, the unexpired term was of no bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Nathan was able to extend his lease at the eleventh hour in April. Nathan and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had fallen lower than eighty years, the figure would have escalated by a minimum £875.
In 2009 we were phoned by Dr Sophia Anderson who, having completed a purpose-built apartment in Budleigh Salterton in June 2010. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical residencies in Budleigh Salterton with 100 year plus lease were worth £233,200. The average ground rent payable was £60 collected every twelve months. The lease came to a finish on 28 February 2086. Given that there were 61 years unexpired we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.
Last August we were phoned by Mr S Morel , who took over the lease of a ground floor apartment in Budleigh Salterton in November 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Budleigh Salterton with a long lease were in the region of £171,800. The average amount of ground rent was £55 invoiced annually. The lease ended on 5 September 2075. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.