Teignmouth leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Teignmouth will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Teignmouth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Teignmouth valuers.
Trailing unsuccessful negotiations with the landlord of her first floor flat in Teignmouth, Freya initiated the lease extension process as the eighty year mark was fast advancing. The transaction was concluded in October 2013. The freeholder’s charges were kept to an absolute minimum.
Mrs Alicia Young owned a ground floor flat in Teignmouth in July 1995. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Teignmouth with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2079. Considering the 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.
Last February we were phoned by Dr M Lefèvre , who purchased a studio apartment in Teignmouth in January 2010. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable flats in Teignmouth with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease ended on 22 May 2100. Having 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.