With a long leasehold premises in Tiverton, you are in fact renting it for a certain period 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 extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Anyone in Tiverton with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years outstanding, under the current Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Tiverton with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Sebastian was the the leasehold proprietor of a conversion flat in Tiverton on the market with a lease of fraction over 59 years outstanding. Sebastian on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. F Sánchez took over the lease of a purpose-built apartment in Tiverton in November 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Tiverton with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 17 January 2089. Having 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
Dr Elijah Hernández purchased a first floor flat in Tiverton in January 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Tiverton with an extended lease were valued around £184,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease termination date was in 2078. Having 53 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.