The only way is down when it comes to Barnstaple lease terms. Barnstaple flats that have a remaining term fewer than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold premises in Barnstaple with over 100 years remaining 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barnstaple can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
After unsuccessful discussions with the freeholder of her ground floor apartment in Barnstaple, Erin commenced the lease extension process as the eighty year deadline was quickly nearing. The lease extension completed in March 2008. The landlord’s fees were restricted to about five hundred pounds.
Last Christmas we were contacted by Ms Jessica Hill , who owned a basement apartment in Barnstaple in March 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Barnstaple with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 invoiced yearly. The lease expired on 6 August 2076. Given that there were 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of professional charges.
Dr R Collins was assigned a lease of a one bedroom apartment in Barnstaple in June 2010. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Comparative premises in Barnstaple with 100 year plus lease were worth £218,000. The average ground rent payable was £45 billed per annum. The lease ended in 2087. Taking into account 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including professional charges.