There is no doubt about it a leasehold property in Crediton is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Crediton will meet the qualifying criteria; however a lawyer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Crediton with over 100 years remaining on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Crediton,the lease extension solicitors 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 correspondence with the landlord of her first floor apartment in Crediton, Rebecca started the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in August 2009. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Dr Ethan André , who bought a ground floor flat in Crediton in July 2002. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar homes in Crediton with an extended lease were valued around £235,200. The average amount of ground rent was £45 billed monthly. The lease expired on 8 February 2092. Considering the 66 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last February we were e-mailed by Mr and Mrs. M Vincent , who completed a ground floor flat in Crediton in March 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical flats in Crediton with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease elapsed on 5 January 2103. Given that there were 77 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.