It’s a harsh certainty that a Tiverton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Tiverton property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Tiverton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Tiverton,the lease extension solicitors that we work with will always be prepared 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.
In the wake of 6 months of lengthy correspondence with the landlord of her garden apartment in Tiverton, Mollie commenced the lease extension process as the eighty year threshold was swiftly advancing. The legal work completed in May 2005. The freeholder’s fees were restricted to below 650 pounds.
In 2011 we were e-mailed by Dr Ibrahim Dupont who, having purchased a newly refurbished apartment in Tiverton in June 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical residencies in Tiverton with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 invoiced yearly. The lease termination date was on 9 June 2099. Taking into account 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
Last Christmas we were contacted by Dr U Parker , who completed a one bedroom apartment in Tiverton in February 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Tiverton with a long lease were worth £240,600. The average amount of ground rent was £60 billed per annum. The lease concluded in 2088. Having 62 years left we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.