Barnstaple leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be due. Flat owners in Barnstaple will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Barnstaple 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.
During the course of the last few months Austin, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Barnstaple. Having purchased his home 18 years ago, the unexpired term was of no interest. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Austin was able to extend his lease just ahead of time last June. Austin and the freeholder eventually agreed on sum of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £975.
Mrs T Rogers owned a studio flat in Barnstaple in June 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Barnstaple with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease end date was on 20 January 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
Mrs P Laurent owned a basement apartment in Barnstaple in March 1997. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Barnstaple with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2103. Having 77 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.