Ivybridge residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Ivybridge with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Coventry Building Society | 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. |
| 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 |
| 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. |
Retaining our service will provide you enhanced control over the value of your Ivybridge leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her two bedroom flat in Ivybridge, Amber started the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction was concluded in October 2012. The landlord’s costs were negotiated to under 650 pounds.
Last year we were approach by Ms Bethan Taylor , who owned a basement flat in Ivybridge in October 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Ivybridge with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed annually. The lease terminated in 2098. Taking into account 72 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Mr Sebastian Petit completed a ground floor flat in Ivybridge in April 2000. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Ivybridge with a long lease were worth £233,200. The average ground rent payable was £60 collected quarterly. The lease elapsed on 8 November 2087. Taking into account 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of costs.