Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Crediton. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Crediton have the right to extend the lease for a further 90 years in accordance with statute. Please give careful attention before delaying your Crediton lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Crediton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Teddy owned a conversion apartment in Crediton being marketed with a lease of a little over sixty years left. Teddy on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.
Dr Alicia García owned a garden flat in Crediton in August 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical homes in Crediton with an extended lease were worth £210,600. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 8 August 2088. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.
Mr and Mrs. N David purchased a basement flat in Crediton in September 1997. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar properties in Crediton with an extended lease were valued about £265,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2099. Given that there were 73 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.