Ivybridge leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ivybridge will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Ivybridge leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Reuben, started to get near to the 80-year mark with the lease on his garden apartment in Ivybridge. Having purchased his home two decades ago, the lease term was of little interest. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Reuben extended the lease just in the nick of time last March. Reuben and the landlord ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have become more costly by at least £1,000.
In 2014 we were approached by Mr and Mrs. V Jackson who, having moved into a studio flat in Ivybridge in July 1998. We are asked if we could estimate the price would be for a 90 year lease extension. Identical homes in Ivybridge with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2098. Taking into account 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Dr H Thompson bought a basement apartment in Ivybridge in June 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Ivybridge with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease concluded in 2087. Given that there were 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.