On the balance of probabilities if you own a flat in Crediton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Crediton,the lease extension lawyers that we work with will always be willing 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.
Half a year ago David, started to get close to the eighty-year mark with the lease on his studio apartment in Crediton. Having purchased his flat two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. David arranged for a lease extension at the eleventh hour last September. David and the freeholder ultimately settled on sum of £6,000 . If the lease had slipped lower than 80 years, the amount would have gone up by at least £1,100.
In 2011 we were called by Ms D Nguyen who, having owned a studio flat in Crediton in October 1998. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical premises in Crediton with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease finished on 12 June 2082. Having 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including legals.
In 2010 we were called by Mr I Roberts who, having took over the lease of a purpose-built flat in Crediton in March 1996. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Crediton with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 28 September 2093. Taking into account 67 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.