There is no doubt about it a leasehold property in Devizes is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Devizes will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Devizes with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Devizes,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Devizes valuers.
Off the back of protracted discussions with the landlord of her basement flat in Devizes, Catherine started the lease extension process as the eighty year threshold was quickly approaching. The transaction completed in February 2009. The landlord’s charges were negotiated to below 700 GBP.
Last Autumn we were contacted by Dr Lucas Alexander , who purchased a ground floor flat in Devizes in February 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable flats in Devizes with a long lease were in the region of £250,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2011 we were phoned by Dr R Ward who, having bought a studio apartment in Devizes in June 2012. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical premises in Devizes with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease terminated on 13 October 2106. Considering the 80 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.