Crediton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Crediton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Crediton you must check if your lease has between seventy and ninety years left. There are compelling reasons why a Crediton leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent 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 ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer 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 a wealth of experience dealing with Crediton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her garden flat in Crediton, Megan started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work completed in May 2013. The freeholder’s charges were restricted to under 600 pounds.
Ms Mollie Patel moved into a garden apartment in Crediton in July 2010. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Similar homes in Crediton with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2099. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last month we were called by Dr J Williams , who bought a one bedroom apartment in Crediton in May 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Crediton with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease ran out in 2079. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.