It’s an underpublicised truth that a Tibshelf residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Tibshelf property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Tibshelf will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Tibshelf with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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 conveyancers that we work with handle Tibshelf 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.
Off the back of lengthy discussions with the freeholder of her two bedroom flat in Tibshelf, Shannon started the lease extension process as the 80 year mark was rapidly coming. The transaction was finalised in August 2012. The freeholder’s charges were negotiated to about four hundred GBP.
Last Autumn we were phoned by Mr and Mrs. W Clark , who moved into a one bedroom apartment in Tibshelf in April 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative flats in Tibshelf with a long lease were worth £213,600. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed on 26 March 2082. Given that there were 57 years left we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.
In 2009 we were contacted by Mr and Mrs. G Laurent who, having bought a one bedroom flat in Tibshelf in April 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Tibshelf with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected annually. The lease ended on 22 October 2102. Having 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.