Crediton leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Crediton will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Crediton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you increased control over the value of your Crediton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Kyle, came dangerously near to the 80-year mark with the lease on his ground floor apartment in Crediton. Having bought his property two decades ago, the lease term was of little bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Kyle arranged for a lease extension just under the wire in August. Kyle and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had fallen lower than 80 years, the premium would have become more exhorbitant by at least £975.
Last year we were phoned by Mr F Morris , who owned a studio apartment in Crediton in June 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar properties in Crediton with a long lease were in the region of £166,400. The average ground rent payable was £60 collected yearly. The lease elapsed on 11 September 2080. Having 54 years remaining we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
Mr and Mrs. P Simon was assigned a lease of a one bedroom flat in Crediton in June 2004. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar premises in Crediton with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2091. Considering the 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.