Sidmouth leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Sidmouth will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Sidmouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a studio apartment in Sidmouth on the market with a lease of fraction over 72 years remaining. Joshua informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Joshua to invoke his statutory right. Joshua procured expert advice and secured satisfactory deal informally and sell the property.
Last Summer we were approach by Ms O Williams , who purchased a newly refurbished flat in Sidmouth in August 2004. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical residencies in Sidmouth with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2087. Considering the 61 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
In 2011 we were called by Mr and Mrs. A Thompson who, having acquired a ground floor flat in Sidmouth in November 2008. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Sidmouth with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired on 21 November 2098. Given that there were 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.