The only way is down when it comes to Totnes lease terms. Totnes properties that have a remaining term less than than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold premises in Totnes with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Totnes can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Totnes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her two bedroom apartment in Totnes, Maisie initiated the lease extension process as the 80 year deadline was quickly nearing. The legal work was finalised in October 2015. The landlord’s costs were kept to an absolute minimum.
Dr William Cook took over the lease of a one bedroom flat in Totnes in April 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Totnes with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 11 February 2088. Having 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus professional charges.
In 2012 we were phoned by Mr and Mrs. Y Garcia who, having took over the lease of a one bedroom apartment in Totnes in September 2000. The question was if we could approximate the price could be for a 90 year lease extension. Similar premises in Totnes with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced annually. The lease concluded in 2099. Taking into account 78 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.