When it comes to long leasehold property in Crediton, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Crediton with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years remaining, under the relevant legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Crediton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crediton valuers.
After unsuccessful discussions with the freeholder of her ground floor flat in Crediton, Louise started the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in April 2014. The landlord’s charges were kept to an absolute minimum.
Dr N Ricardo purchased a ground floor flat in Crediton in August 2007. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Crediton with 100 year plus lease were worth £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease finished on 28 November 2083. Taking into account 57 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Mr and Mrs. S Mason was assigned a lease of a one bedroom apartment in Crediton in October 2003. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Crediton with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 22 April 2094. Considering the 68 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.