On the balance of probabilities where you own a flat in Teignmouth you actually own a long leasehold interest over your property
Leasehold properties in Teignmouth with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with procure Teignmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Connor owned a 2 bedroom apartment in Teignmouth being marketed with a lease of fraction over 61 years remaining. Connor on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mrs Eleanor Edwards moved into a basement apartment in Teignmouth in April 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar premises in Teignmouth with a long lease were valued about £243,000. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish in 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
In 2014 we were phoned by Ms K Davis who, having acquired a basement apartment in Teignmouth in May 2009. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Teignmouth with an extended lease were valued about £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 8 September 2078. Considering the 52 years outstanding we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.