On the balance of probabilities where you own a flat in Barnstaple you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure guidance from a conveyancer 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 dealing with Barnstaple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Muhammad, came precariously near to the 80-year threshold with the lease on his two bedroom flat in Barnstaple. Having purchased his property two decades ago, the lease term was of minimal importance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Muhammad extended the lease just in the nick of time last May. Muhammad and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had slipped below 80 years, the sum would have gone up by at least £1,050.
Last Summer we were e-mailed by Mr Gabriel Roux , who acquired a one bedroom flat in Barnstaple in July 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Barnstaple with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2078. Given that there were 52 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including legals.
Last Autumn we were approach by Dr G Anderson , who bought a studio apartment in Barnstaple in January 2007. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Barnstaple with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 13 July 2089. Given that there were 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.