The nearer a residential lease in Tickton nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Tickton will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you better control over the value of your Tickton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a 2 bedroom apartment in Tickton on the market with a lease of fraction over 61 years outstanding. Jacob informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2012 we were called by Ms S Moreau who, having moved into a purpose-built flat in Tickton in February 2010. The question was if we could approximate the price would be to extend the lease by an additional years. Comparable flats in Tickton with 100 year plus lease were worth £285,000. The average ground rent payable was £45 collected monthly. The lease elapsed in 2097. Having 72 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
In 2009 we were e-mailed by Dr Jack Wood who, having moved into a purpose-built flat in Tickton in August 1998. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical properties in Tickton with a long lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease terminated on 26 June 2086. Considering the 61 years remaining we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including professional charges.