With a residential leasehold premises in Tiverton, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Tiverton with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When the lease term has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tiverton can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience 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.
Off the back of protracted correspondence with the landlord of her ground floor flat in Tiverton, Bethan commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work completed in January 2014. The landlord’s charges were restricted to slightly above 650 pounds.
Last Summer we were e-mailed by Mr and Mrs. B Adams , who acquired a one bedroom flat in Tiverton in February 1995. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Tiverton with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease ended in 2088. Considering the 67 years unexpired we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of costs.
Last Autumn we were contacted by Mrs Erin Thompson , who owned a one bedroom flat in Tiverton in October 2003. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable residencies in Tiverton with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated on 4 March 2077. Taking into account 56 years left we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.