Tarporley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Tarporley tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Tarporley you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with procure Tarporley 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.
In 2014 Gabriel, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Tarporley. In buying his flat two decades ago, the unexpired term was of no concern. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Gabriel extended the lease just ahead of time last June. Gabriel and the landlord eventually settled on the final figure of £6,000 . If the lease had gone to less than eighty years, the premium would have become more costly by a minimum £1,050.
Mrs Courtney Michel moved into a one bedroom flat in Tarporley in October 1996. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative homes in Tarporley with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease end date was in 2105. Considering the 80 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last Autumn we were called by Mr Harvey Gómez , who completed a studio apartment in Tarporley in February 2001. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Tarporley with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 collected per annum. The lease expiry date was on 25 August 2094. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.