Cullompton leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard 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 Cullompton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cullompton can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge procuring Cullompton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold owner of a high value flat in Cullompton on the market with a lease of just over 72 years left. Ollie on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr Nathaniel López took over the lease of a one bedroom flat in Cullompton in November 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Cullompton with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £60 billed monthly. The lease ended in 2105. Having 80 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
In 2012 we were phoned by Mr Michael Allen who, having moved into a ground floor flat in Cullompton in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Cullompton with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2085. Taking into account 60 years outstanding we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of costs.