Salcombe leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Salcombe will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Salcombe with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Salcombe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Salcombe valuers.
Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Salcombe, Charlotte initiated the lease extension process as the 80 year threshold was rapidly nearing. The legal work was finalised in August 2011. The landlord’s fees were restricted to below 500 pounds.
In 2010 we were called by Dr T Bailey who, having completed a one bedroom apartment in Salcombe in May 1998. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative properties in Salcombe with 100 year plus lease were worth £198,400. The mid-range ground rent payable was £65 billed per annum. The lease end date was on 6 October 2084. Given that there were 59 years outstanding we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last Autumn we were phoned by Ms Caitlin Gómez , who was assigned a lease of a ground floor flat in Salcombe in November 1997. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Salcombe with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2095. Having 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.