The only way is down when it comes to Crediton lease terms. Crediton properties that have a residual term shorter than eighty years will drop in value at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better 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 wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold owner of a studio apartment in Crediton being sold with a lease of a little over 61 years outstanding. Benjamin on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2010 we were e-mailed by Mr and Mrs. I Richardson who, having purchased a purpose-built flat in Crediton in August 1998. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical premises in Crediton with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished in 2103. Considering the 77 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. O Bennett took over the lease of a recently refurbished flat in Crediton in August 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Crediton with a long lease were valued about £183,600. The average ground rent payable was £65 collected quarterly. The lease expired in 2083. Taking into account 57 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.