There is no doubt about it a leasehold flat or house in Teignmouth is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Teignmouth will qualify for this right; nevertheless a lawyer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Teignmouth with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Using our service gives you increased control over the value of your Teignmouth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Teignmouth, Bethany commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction completed in April 2005. The freeholder’s charges were negotiated to about 550 GBP.
Last Winter we were phoned by Mr and Mrs. B Hall , who completed a studio apartment in Teignmouth in January 1997. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Teignmouth with an extended lease were in the region of £216,000. The average amount of ground rent was £60 billed yearly. The lease ran out in 2083. Given that there were 58 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Dr Connor Martin acquired a basement flat in Teignmouth in March 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Teignmouth with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated on 4 August 2103. Considering the 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of expenses.