For anyone whose Tiverton flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Tiverton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you better control over the value of your Tiverton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her leasehold flat in Tiverton, Rhiannon initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was finalised in June 2008. The landlord’s fees were restricted to about 450 GBP.
In 2009 we were phoned by Mr K Collins who, having took over the lease of a one bedroom flat in Tiverton in June 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Tiverton with an extended lease were in the region of £191,400. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2080. Having 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus expenses.
Last month we were called by Dr Teddy King , who acquired a newly refurbished apartment in Tiverton in January 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Tiverton with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced yearly. The lease termination date was on 28 April 2100. Considering the 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.