Crediton leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Crediton will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Crediton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Trailing lengthy negotiations with the freeholder of her leasehold flat in Crediton, Mia commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The lease extension was finalised in March 2005. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. E Harris who, having acquired a purpose-built apartment in Crediton in May 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Crediton with a long lease were worth £186,000. The mid-range ground rent payable was £65 billed monthly. The lease finished in 2084. Given that there were 58 years left we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 plus legals.
In 2013 we were phoned by Mr and Mrs. V Kelly who, having was assigned a lease of a one bedroom apartment in Crediton in March 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative homes in Crediton with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2095. Considering the 69 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.