When it comes to long leasehold premises in Crediton, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Crediton with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has less than 80 years left, under the current Act the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Crediton with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Crediton can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Crediton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her purpose-built flat in Crediton, Shannon commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was concluded in September 2009. The freeholder’s costs were restricted to approximately 550 GBP.
In 2011 we were approached by Dr Ibrahim Parker who, having was assigned a lease of a ground floor apartment in Crediton in July 2006. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Crediton with a long lease were worth £245,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired in 2094. Taking into account 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2009 we were e-mailed by Mrs T Cox who, having purchased a newly refurbished apartment in Crediton in March 2012. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar properties in Crediton with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 27 February 2105. Given that there were 79 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.