On the balance of probabilities if you own a flat in Teignmouth you actually own a long leasehold interest over your property
Leasehold residencies in Teignmouth with in excess of 100 years remaining on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Using our service gives you enhanced control over the value of your Teignmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a studio apartment in Teignmouth on the market with a lease of a few days over 72 years remaining. Leo informally contacted his freeholder being a well known Bristol-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 to start with set at £150 per annum and increase every 25 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 was able to make a more informed judgement and deal with the matter and sell the property.
In 2009 we were phoned by Mr and Mrs. A Wood who, having completed a studio apartment in Teignmouth in April 2008. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Teignmouth with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced per annum. The lease terminated in 2104. Taking into account 78 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Last Autumn we were called by Mr and Mrs. U Davies , who moved into a basement apartment in Teignmouth in February 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Teignmouth with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 16 February 2093. Taking into account 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.