When it comes to domestic leasehold premises in Barnstaple, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Leasehold owners in Barnstaple with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Barnstaple 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
Lease extensions in Barnstaple can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 Barnstaple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jake, started to get near to the eighty-year threshold with the lease on his garden flat in Barnstaple. Having purchased his home 19 years ago, the unexpired term was of little significance. by good luck, he noticed he needed to take action soon on a lease extension. Jake arranged for a lease extension at the eleventh hour last August. Jake and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £900.
Mr and Mrs. S Ramírez bought a first floor apartment in Barnstaple in February 2000. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Barnstaple with a long lease were valued around £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease came to a finish on 8 February 2082. Having 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.
In 2009 we were phoned by Mr G Harris who, having took over the lease of a first floor apartment in Barnstaple in September 2012. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical flats in Barnstaple with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease end date was in 2093. Given that there were 67 years left we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.