Tiverton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Tiverton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tiverton you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Tiverton flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Tiverton with over 100 years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Tiverton 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 conveyancing solicitor we work with provide it.
Mason was the the leasehold proprietor of a conversion apartment in Tiverton being marketed with a lease of a little over 72 years left. Mason informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2009 we were called by Ms D Baker who, having acquired a basement flat in Tiverton in November 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Tiverton with an extended lease were valued around £166,800. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2076. Taking into account 50 years unexpired we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.
Mr and Mrs. S Anderson was assigned a lease of a first floor apartment in Tiverton in September 1998. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar properties in Tiverton with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 collected annually. The lease ended on 20 June 2096. Considering the 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.