Tibshelf leases on residential properties are gradually decreasing 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 ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Tibshelf you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Tibshelf leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Tibshelf with in excess of one hundred 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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.
Last year Noah, came very close to the 80-year threshold with the lease on his leasehold flat in Tibshelf. Having bought his property 19 years previously, the length of the lease was of little interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Noah extended the lease at the eleventh hour last August. Noah and the landlord eventually agreed on a premium of £5,000 . If he not met the deadline, the figure would have gone up by at least £950.
Last year we were contacted by Mrs T González , who acquired a one bedroom apartment in Tibshelf in September 1995. We are asked if we could approximate the price could be for a ninety year lease extension. Identical homes in Tibshelf with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2104. Taking into account 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last April we were phoned by Dr W Carter , who was assigned a lease of a studio apartment in Tibshelf in May 2007. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable residencies in Tibshelf with a long lease were worth £275,000. The mid-range ground rent payable was £65 billed annually. The lease finished on 17 June 2093. Given that there were 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.