The closer a residential lease in Teignmouth gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 99 years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Teignmouth will qualify for this right; however a conveyancer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Teignmouth with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Teignmouth can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Teignmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aaron, came seriously close to the eighty-year mark with the lease on his two bedroom apartment in Teignmouth. In buying his property twenty years ago, the unexpired term was of minimal significance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Aaron arranged for a lease extension just ahead of time last May. Aaron and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he had missed the deadline, the figure would have increased by at least £975.
Last September we were called by Mr and Mrs. S Khan , who was assigned a lease of a garden flat in Teignmouth in April 1998. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Teignmouth with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 24 November 2077. Given that there were 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.
Last Christmas we were e-mailed by Mr and Mrs. D Vincent , who was assigned a lease of a garden flat in Teignmouth in April 2007. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical residencies in Teignmouth with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced annually. The lease expired in 2097. Having 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.