Chances are that if you own a flat in Dulverton you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| 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 |
| 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 Dulverton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 Dulverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Daniel, came precariously close to the 80-year threshold with the lease on his basement apartment in Dulverton. In buying his home 19 years previously, the unexpired term was of little relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Daniel extended the lease just under the wire in April. Daniel and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,025.
Mr O Sharif moved into a recently refurbished apartment in Dulverton in March 1998. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative premises in Dulverton with a long lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease concluded on 27 February 2094. Given that there were 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2009 we were approached by Dr B Norbert who, having moved into a one bedroom flat in Dulverton in November 2006. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Dulverton with 100 year plus lease were valued around £290,000. The average ground rent payable was £60 invoiced yearly. The lease concluded on 5 July 2105. Taking into account 80 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.