Crediton residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Crediton can be a difficult process. We recommend you obtain professional help 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.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her basement flat in Crediton, Ellie started the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work completed in September 2012. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. G Pérez , who bought a purpose-built flat in Crediton in February 2001. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Crediton with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed per annum. The lease terminated on 10 March 2087. Given that there were 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.
Dr K González took over the lease of a newly refurbished apartment in Crediton in February 2008. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical residencies in Crediton with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed every twelve months. The lease end date was in 2098. Considering the 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.