The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Totnes have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Totnes lease extension. Postponing that expense now simply escalates the amount you will eventually be required to pay to extend the lease.
Leasehold premises in Totnes with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Totnes,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 Totnes valuers.
In the wake of 9 months of lengthy correspondence with the landlord of her basement flat in Totnes, Millie initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work was finalised in March 2008. The landlord’s fees were negotiated to about 600 pounds.
In 2011 we were approached by Mr and Mrs. G Dupont who, having was assigned a lease of a newly refurbished apartment in Totnes in April 1995. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar residencies in Totnes with an extended lease were worth £168,800. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2081. Considering the 55 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
In 2012 we were called by Mrs Stephanie Hall who, having purchased a first floor flat in Totnes in April 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative premises in Totnes with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2092. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.