There is no doubt about it a leasehold property in Tetbury is a wasting asset as a result of the shortening lease. If the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Tetbury will meet the qualifying criteria; that being said a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Tetbury with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with handle Tetbury 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 lawyer we work with provide it.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her two bedroom flat in Tetbury, Ashleigh started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was finalised in June 2011. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. J Mercier acquired a one bedroom apartment in Tetbury in August 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Tetbury with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2105. Having 80 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Dr O Adams acquired a first floor flat in Tetbury in October 2010. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar properties in Tetbury with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 billed per annum. The lease ended on 11 October 2085. Having 60 years left we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.