The re-sale value of a leasehold property in Barnstaple is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation enables Barnstaple qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Barnstaple with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Barnstaple,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnstaple valuers.
In 2014 James, started to get near to the eighty-year mark with the lease on his basement flat in Barnstaple. Having purchased his flat two decades ago, the length of the lease was of no concern. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. James extended the lease at the eleventh hour last September. James and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £900.
Dr S Roberts owned a newly refurbished apartment in Barnstaple in August 1996. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Similar residencies in Barnstaple with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2082. Having 57 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
Last month we were e-mailed by Mr I Stewart , who completed a basement apartment in Barnstaple in February 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Barnstaple with a long lease were worth £250,000. The average amount of ground rent was £50 billed per annum. The lease finished on 9 January 2093. Considering the 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.