Crediton leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Flat owners in Crediton will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Crediton with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with procure Crediton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Isaac owned a conversion flat in Crediton being sold with a lease of fraction over fifty eight years left. Isaac on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last Christmas we were approach by Mrs Imogen Laurent , who moved into a one bedroom flat in Crediton in March 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Crediton with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2079. Given that there were 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.
Last Christmas we were e-mailed by Dr A González , who completed a one bedroom apartment in Crediton in November 1998. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable premises in Crediton with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed yearly. The lease lapsed on 20 November 2090. Having 64 years left we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus costs.