Tibshelf leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Tibshelf tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tibshelf you would be well advised to check if your lease has between seventy and 90 years left. There are good reasons why a Tibshelf leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Tibshelf with in excess of one hundred 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Tibshelf,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tibshelf valuers.
In recent months Oscar, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Tibshelf. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Oscar arranged for a lease extension just in the nick of time in May. Oscar and the freeholder ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £950.
Dr Chantelle Davies acquired a one bedroom apartment in Tibshelf in January 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Tibshelf with 100 year plus lease were worth £248,000. The average ground rent payable was £65 billed quarterly. The lease concluded in 2088. Given that there were 63 years remaining we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus legals.
Last March we were approach by Mrs N González , who was assigned a lease of a purpose-built apartment in Tibshelf in October 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative premises in Tibshelf with a long lease were valued around £181,600. The average ground rent payable was £55 collected every twelve months. The lease finished in 2077. Considering the 52 years remaining we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.