There is no doubt about it a leasehold property in Tewkesbury is a wasting asset as a result of the shortening lease. Where the lease has, more than 125 years to run 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 increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Tewkesbury will qualify for this right; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Tewkesbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Oliver, started to get near to the 80-year threshold with the lease on his leasehold apartment in Tewkesbury. Having purchased his property 18 years previously, the length of the lease was of minimal significance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Oliver was able to extend his lease just ahead of time last September. Oliver and the landlord ultimately agreed on the final figure of £6,000 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £1,100.
In 2009 we were phoned by Mr Kian Phillips who, having moved into a one bedroom apartment in Tewkesbury in April 1997. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Tewkesbury with an extended lease were in the region of £267,600. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 9 August 2092. Given that there were 67 years outstanding we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including legals.
In 2012 we were contacted by Dr Isaac Watson who, having acquired a purpose-built flat in Tewkesbury in May 2000. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar properties in Tewkesbury with a long lease were valued around £206,200. The average ground rent payable was £55 collected annually. The lease concluded in 2081. Given that there were 56 years outstanding we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.