When it comes to residential leasehold property in Paignton, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Paignton with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once the lease term has under 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Paignton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Paignton can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 in-depth market knowledge 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.
Off the back of lengthy correspondence with the landlord of her first floor flat in Paignton, Olivia commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was finalised in July 2012. The landlord’s fees were negotiated to about 500 pounds.
In 2014 we were contacted by Mr and Mrs. P Lee who, having purchased a ground floor flat in Paignton in March 2010. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Paignton with a long lease were worth £184,000. The average ground rent payable was £55 invoiced quarterly. The lease ended on 11 August 2079. Taking into account 53 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.
Mr and Mrs. N Sharif purchased a purpose-built apartment in Paignton in November 2002. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Paignton with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed annually. The lease expired on 20 February 2099. Given that there were 73 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.