When it comes to domestic leasehold premises in Paignton, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Paignton with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has under eighty years remaining, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Paignton with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Paignton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Paignton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Ali, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Paignton. Having bought his flat two decades ago, the lease term was of minimal importance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Ali was able to extend his lease just under the wire last January. Ali and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £875.
In 2011 we were approached by Dr Kirsty Thomas who, having acquired a first floor flat in Paignton in September 1997. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable properties in Paignton with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 18 January 2104. Given that there were 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
In 2014 we were phoned by Dr W González who, having acquired a one bedroom apartment in Paignton in July 2009. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Paignton with a long lease were worth £275,000. The average ground rent payable was £65 billed every twelve months. The lease termination date was in 2093. Taking into account 68 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.