The closer a domestic lease in Salcombe gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Salcombe will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Salcombe can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring Salcombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo was the the leasehold owner of a 2 bedroom apartment in Salcombe on the market with a lease of just over 59 years outstanding. Leo on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were e-mailed by Dr M Gunderson who, having completed a first floor apartment in Salcombe in May 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable flats in Salcombe with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed annually. The lease ended in 2094. Taking into account 68 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. V White purchased a garden flat in Salcombe in June 2011. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable properties in Salcombe with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease came to a finish on 18 January 2105. Given that there were 79 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.