With a residential leasehold premises in Teignmouth, you are actually buying a right to live in a property for a set period of time. In recent years 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 think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Teignmouth with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the current statute the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Teignmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Logan owned a high value flat in Teignmouth on the market with a lease of a little over 61 years unexpired. Logan informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert advice and secured satisfactory deal informally and readily saleable.
Last year we were phoned by Mrs H Lewis , who acquired a one bedroom apartment in Teignmouth in November 2010. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar homes in Teignmouth with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 1 April 2102. Taking into account 77 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Mrs Danielle Adams bought a one bedroom apartment in Teignmouth in January 2003. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative premises in Teignmouth with a long lease were worth £265,200. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 17 June 2091. Given that there were 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including expenses.