The only way is down when it comes to Tibshelf lease terms. Tibshelf flats that have a residual term lower than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Tibshelf with over 100 years remaining on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
In recent months Theo, came dangerously near to the 80-year mark with the lease on his first floor apartment in Tibshelf. In buying his home 18 years ago, the lease term was of no importance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Theo arranged for a lease extension just in the nick of time in June. Theo and the freeholder ultimately agreed on the final figure of £5,500 . If the lease had dipped lower than 80 years, the amount would have increased by at least £950.
Last Spring we were called by Mr N Nelson , who purchased a studio apartment in Tibshelf in October 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Tibshelf with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced monthly. The lease finished on 21 March 2084. Having 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
In 2010 we were approached by Mrs A Fournier who, having owned a ground floor flat in Tibshelf in November 1995. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative residencies in Tibshelf with a long lease were worth £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 6 October 2104. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 not including legals.