With a long leasehold premises in Tiverton, you effectively rent 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 lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Tiverton with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has less than 80 years left, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Tiverton with in excess of one hundred years unexpired on the lease are often 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 justify 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Tiverton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a conversion flat in Tiverton being sold with a lease of a few days over sixty years outstanding. Luca on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr Amelia Allen purchased a one bedroom flat in Tiverton in October 2002. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Tiverton with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease termination date was in 2084. Taking into account 58 years left we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Last Autumn we were e-mailed by Mr Samuel Gunderson , who bought a one bedroom flat in Tiverton in September 2008. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical homes in Tiverton with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 1 February 2104. Taking into account 78 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.