With a long leasehold premises in South Molton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long 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 gets disproportionately greater notably once there are fewer than 80 years remaining. Residents in South Molton with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in South Molton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in South Molton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Molton valuers.
Archie was the the leasehold proprietor of a high value apartment in South Molton being sold with a lease of just over sixty years left. Archie informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr Blake Morgan moved into a studio flat in South Molton in June 1997. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable properties in South Molton with a long lease were valued around £240,600. The average ground rent payable was £60 invoiced per annum. The lease ended on 24 April 2087. Having 62 years outstanding we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Dr S François completed a basement apartment in South Molton in April 2000. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparable residencies in South Molton with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 collected annually. The lease came to a finish in 2076. Taking into account 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.