There is no doubt about it a leasehold property in Totnes is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Totnes will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Totnes with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
Lease extensions in Totnes can be a difficult process. We recommend you procure guidance 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 a wealth of experience 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.
Oliver was the the leasehold owner of a high value apartment in Totnes on the market with a lease of a few days over fifty eight years unexpired. Oliver on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Winter we were called by Dr Grace Peterson , who moved into a garden apartment in Totnes in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar residencies in Totnes with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 11 September 2088. Given that there were 62 years remaining we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.
Mr and Mrs. M Petit completed a ground floor flat in Totnes in September 2012. The question was if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Totnes with an extended lease were worth £260,000. The average ground rent payable was £50 collected per annum. The lease finished on 5 November 2099. Given that there were 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.