Unfortunately that a Tibshelf residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Tibshelf property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. 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 follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Tibshelf can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Tibshelf lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a high value flat in Tibshelf being sold with a lease of just over sixty years remaining. Isaac on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2010 we were e-mailed by Ms Lucy Reed who, having was assigned a lease of a basement flat in Tibshelf in March 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Tibshelf with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 4 February 2078. Having 53 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
Mr and Mrs. S Harris took over the lease of a studio flat in Tibshelf in July 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Tibshelf with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2098. Considering the 73 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.