Tibshelf leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Tibshelf will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Tibshelf with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her two bedroom flat in Tibshelf, Phoebe initiated the lease extension process as the 80 year threshold was quickly advancing. The transaction was concluded in January 2014. The freeholder’s charges were restricted to under 500 pounds.
In 2012 we were contacted by Dr H Lefèvre who, having was assigned a lease of a studio apartment in Tibshelf in February 2010. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Tibshelf with a long lease were valued around £290,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 7 June 2099. Taking into account 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Last Christmas we were phoned by Mr Leon Davies , who purchased a purpose-built apartment in Tibshelf in September 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Tibshelf with an extended lease were in the region of £240,600. The average ground rent payable was £65 collected annually. The lease elapsed on 21 April 2088. Having 62 years remaining we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.