Tibshelf leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Tibshelf will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Tibshelf with over one hundred years left on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Coventry Building Society | 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Tibshelf leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted correspondence with the freeholder of her two bedroom flat in Tibshelf, Maisie initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension completed in August 2011. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. M Patel owned a first floor apartment in Tibshelf in July 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Tibshelf with a long lease were worth £275,000. The average amount of ground rent was £65 billed quarterly. The lease elapsed in 2093. Having 68 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last month we were phoned by Mr Y Thomas , who owned a one bedroom apartment in Tibshelf in February 1998. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Tibshelf with an extended lease were valued around £213,600. The mid-range ground rent payable was £60 billed yearly. The lease ran out in 2082. Having 57 years remaining we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.