When it comes to domestic leasehold property in Totnes, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Totnes with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years remaining, under the current Act the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Totnes with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Totnes 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 conveyancer we work with provide it.
In the wake of 6 months of protracted negotiations with the landlord of her garden flat in Totnes, Lily commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was concluded in September 2009. The freeholder’s fees were restricted to slightly above 450 GBP.
Dr Ibrahim Mason took over the lease of a ground floor apartment in Totnes in November 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Totnes with a long lease were valued around £265,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. L Turner moved into a one bedroom flat in Totnes in April 2010. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Totnes with a long lease were worth £166,400. The average ground rent payable was £60 collected quarterly. The lease finished on 27 August 2080. Considering the 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.