With a domestic leasehold property in Devizes, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Devizes with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When a lease has below 80 years remaining, under the relevant legislation the freeholder can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Devizes,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Devizes valuers.
Last Winter Riley, came very near to the 80-year threshold with the lease on his leasehold apartment in Devizes. In buying his flat two decades ago, the unexpired term was of little interest. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Riley was able to extend his lease at the eleventh hour in March. Riley and the freeholder ultimately settled on sum of £5,000 . If the lease had slid lower than 80 years, the amount would have become more exhorbitant by at least £900.
Last July we were approach by Mr and Mrs. P González , who bought a purpose-built flat in Devizes in March 1999. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable flats in Devizes with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 billed every twelve months. The lease expired in 2078. Given that there were 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.
In 2009 we were approached by Mr and Mrs. B Gómez who, having owned a one bedroom apartment in Devizes in August 2012. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Devizes with a long lease were worth £220,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired in 2089. Considering the 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of fees.