The re-sale value of a leasehold property in Ivybridge depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded well before the 80 year mark. Statute enables Ivybridge qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The lawyers that we work with undertake Ivybridge 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 conveyancer we work with provide it.
Henry was the the leasehold owner of a high value apartment in Ivybridge being marketed with a lease of a little over sixty years outstanding. Henry informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last year we were e-mailed by Mr and Mrs. E Scott , who took over the lease of a first floor apartment in Ivybridge in February 2009. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Ivybridge with an extended lease were valued about £225,800. The average ground rent payable was £60 billed quarterly. The lease lapsed on 4 April 2086. Given that there were 60 years left we estimated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 plus expenses.
In 2009 we were phoned by Mr and Mrs. B Díaz who, having moved into a basement flat in Ivybridge in September 2002. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Ivybridge with a long lease were valued about £210,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 9 May 2106. Taking into account 80 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.