There is no doubt about it a leasehold property in Tickton is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining 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 main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Tickton will meet the qualifying criteria; however a conveyancer can confirm whether you qualify for a lease extension. In limited 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 conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Tickton 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 conveyancer we work with provide it.
In the wake of 6 months of unsuccessful discussions with the landlord of her one bedroom apartment in Tickton, Amber started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in April 2015. The freeholder’s fees were kept to an absolute minimum.
Dr Charlie García acquired a one bedroom flat in Tickton in July 2011. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable premises in Tickton with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded in 2105. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Autumn we were called by Mr and Mrs. C Smith , who completed a one bedroom flat in Tickton in July 2009. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical premises in Tickton with an extended lease were valued about £275,000. The average amount of ground rent was £45 collected quarterly. The lease lapsed in 2094. Taking into account 69 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.