It’s an underpublicised truth that a Crediton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Crediton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Crediton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Crediton with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Crediton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 procuring Crediton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her leasehold apartment in Crediton, Courtney commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in April 2012. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Mr N Rivera who, having completed a one bedroom flat in Crediton in May 2004. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative properties in Crediton with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected annually. The lease finished in 2102. Given that there were 76 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
In 2012 we were phoned by Dr Leo Hall who, having completed a basement apartment in Crediton in June 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Crediton with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease end date was on 24 February 2082. Having 56 years outstanding we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of legals.