Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Totnes. Inevitably, the period of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Totnes have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Totnes lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Totnes can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Totnes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her garden apartment in Totnes, Isabella initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in February 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Ms M Bonnet , who acquired a first floor flat in Totnes in February 2009. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Totnes with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 billed annually. The lease finished on 19 November 2085. Having 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.
Dr Hunter Turner bought a ground floor apartment in Totnes in March 2002. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Totnes with an extended lease were valued about £255,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 7 May 2096. Taking into account 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.