Chances are that if you own a flat in Crediton you actually own a long leasehold interest over your property
Leasehold properties in Crediton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Crediton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold proprietor of a conversion apartment in Crediton being marketed with a lease of just over 61 years remaining. Ryan informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Summer we were approach by Dr Nathan Bailey , who bought a one bedroom apartment in Crediton in July 2006. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Crediton with a long lease were valued around £227,800. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 25 September 2091. Having 65 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2014 we were called by Dr O Díaz who, having moved into a one bedroom apartment in Crediton in October 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Crediton with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced yearly. The lease ended on 4 September 2102. Considering the 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.