Barnstaple leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Barnstaple will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Barnstaple leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Isaac, came dangerously near to the 80-year threshold with the lease on his two bedroom flat in Barnstaple. In buying his property 18 years previously, the length of the lease was of little significance. Fortunately, he realised he needed to take action soon on a lease extension. Isaac extended the lease just ahead of time in May. Isaac and the landlord in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,125.
Last Spring we were e-mailed by Ms Aimee Morgan , who took over the lease of a one bedroom apartment in Barnstaple in June 2011. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Barnstaple with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended in 2102. Considering the 76 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. P Scott moved into a ground floor flat in Barnstaple in June 2003. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Barnstaple with an extended lease were valued about £176,200. The average amount of ground rent was £65 collected per annum. The lease terminated in 2082. Considering the 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.