When it comes to residential leasehold property in Tiverton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Leasehold owners in Tiverton with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Lease extensions in Tiverton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with Tiverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted correspondence with the freeholder of her studio apartment in Tiverton, Yasmin started the lease extension process as the eighty year deadline was fast advancing. The legal work completed in November 2009. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Dr Kirsty Rogers , who purchased a recently refurbished apartment in Tiverton in July 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Tiverton with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced yearly. The lease finished on 15 March 2097. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Last Winter we were e-mailed by Mr and Mrs. P Thompson , who acquired a purpose-built apartment in Tiverton in January 1999. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar homes in Tiverton with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease ended in 2086. Taking into account 65 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.