Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Taunton. Inevitably, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Taunton have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due consideration before putting off your Taunton lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Taunton with over 100 years remaining on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Taunton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Taunton 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 freeholder of her first floor flat in Taunton, Eleanor initiated the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension completed in February 2006. The landlord’s fees were kept to an absolute minimum.
Mr Henry Hernández was assigned a lease of a newly refurbished flat in Taunton in January 2002. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable properties in Taunton with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2105. Given that there were 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 plus professional charges.
Ms S Lefebvre moved into a purpose-built flat in Taunton in July 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical premises in Taunton with 100 year plus lease were valued about £270,000. The average ground rent payable was £65 billed monthly. The lease concluded on 19 November 2094. Having 68 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.