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. It is the case that most Tiverton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Tiverton you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Tiverton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tiverton valuers.
After unsuccessful negotiations with the landlord of her one bedroom flat in Tiverton, Katie commenced the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction was concluded in January 2014. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Dr U Davis , who acquired a one bedroom apartment in Tiverton in June 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Tiverton with a long lease were valued about £223,400. The average ground rent payable was £60 billed quarterly. The lease lapsed on 2 July 2085. Having 59 years unexpired we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.
Mr Tyler Lee purchased a basement flat in Tiverton in April 1997. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Tiverton with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out on 2 November 2105. Considering the 79 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.