Devizes leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Devizes enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Devizes you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Devizes leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property 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. |
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Devizes 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.
In 2014 Alfie, came very near to the 80-year mark with the lease on his basement apartment in Devizes. In buying his flat 19 years previously, the unexpired term was of no significance. Fortunately, he noticed he needed to take action soon on a lease extension. Alfie arranged for a lease extension just under the wire in January. Alfie and the landlord in the end agreed on an amount of £6,000 . If the lease had slid below eighty years, the sum would have gone up by at least £1,000.
Last year we were phoned by Mrs Y Mercier , who purchased a newly refurbished apartment in Devizes in July 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Devizes with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced quarterly. The lease elapsed on 2 March 2085. Taking into account 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.
In 2012 we were e-mailed by Ms W Gray who, having bought a newly refurbished flat in Devizes in April 1998. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative premises in Devizes with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 6 May 2096. Having 71 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.