Topsham leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Topsham will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Topsham with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Topsham 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 lawyer we work with provide it.
Kai owned a studio flat in Topsham being sold with a lease of fraction over sixty years remaining. Kai on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2013 we were approached by Dr Charlie Sharif who, having was assigned a lease of a one bedroom flat in Topsham in April 2003. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Topsham with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 11 September 2103. Having 78 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last Winter we were phoned by Mr and Mrs. W Laurent , who was assigned a lease of a basement flat in Topsham in August 2006. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Topsham with a long lease were valued about £267,600. The average amount of ground rent was £65 collected per annum. The lease concluded on 9 October 2092. Taking into account 67 years remaining we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.