Chances are that if you own a flat in Salcombe you actually own a long leasehold interest over your property
Leasehold properties in Salcombe with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Salcombe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a high value apartment in Salcombe on the market with a lease of a few days over 59 years left. Henry informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.
Last Spring we were approach by Dr L Allen , who was assigned a lease of a first floor apartment in Salcombe in May 1996. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Identical flats in Salcombe with an extended lease were in the region of £193,400. The average ground rent payable was £65 billed every twelve months. The lease terminated on 10 July 2083. Considering the 59 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Last July we were approach by Mrs Y Parker , who acquired a newly refurbished flat in Salcombe in November 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Salcombe with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 3 September 2094. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.