Crediton leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Crediton will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Crediton with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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 |
Retaining our service will provide you better control over the value of your Crediton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian owned a studio flat in Crediton being sold with a lease of a little over 59 years outstanding. Kian informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Ms B Stewart bought a first floor flat in Crediton in November 1998. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Crediton with a long lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2090. Taking into account 64 years outstanding we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 plus professional charges.
Last Spring we were contacted by Dr E Hill , who completed a basement flat in Crediton in November 2007. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative premises in Crediton with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired in 2101. Considering the 75 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.