Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Tiverton. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Tiverton have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Tiverton lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
Lease extensions in Tiverton can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge 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 2014 Arthur, started to get close to the 80-year mark with the lease on his ground floor apartment in Tiverton. In buying his property 19 years ago, the unexpired term was of no interest. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Arthur was able to extend his lease at the eleventh hour in May. Arthur and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had gone below eighty years, the price would have increased by a minimum £1,025.
In 2012 we were contacted by Mr Oscar Evans who, having owned a one bedroom flat in Tiverton in May 2008. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable properties in Tiverton with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected monthly. The lease end date was in 2104. Considering the 79 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2012 we were contacted by Mr and Mrs. T Norbert who, having was assigned a lease of a garden apartment in Tiverton in April 2003. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical residencies in Tiverton with a long lease were worth £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease ran out on 12 November 2093. Having 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.