With a long leasehold premises in Royal Tunbridge Wells, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Royal Tunbridge Wells with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has less than 80 years left, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 Royal Tunbridge Wells can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Royal Tunbridge Wells lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Harry, came dangerously near to the eighty-year mark with the lease on his basement apartment in Royal Tunbridge Wells. Having purchased his home twenty years previously, the length of the lease was of little interest. by good luck, he became aware that he needed to take action soon on Extending the lease. Harry arranged for a lease extension just under the wire last January. Harry and the freeholder subsequently agreed on an amount of £5,500 . If the lease had descended to less than 80 years, the premium would have escalated by a minimum £850.
Last March we were approach by Dr H Anderson , who owned a studio flat in Royal Tunbridge Wells in June 2009. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Royal Tunbridge Wells with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 collected per annum. The lease ended on 12 November 2080. Taking into account 55 years unexpired we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.
Mr J Parker was assigned a lease of a one bedroom flat in Royal Tunbridge Wells in January 1995. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Royal Tunbridge Wells with an extended lease were valued about £295,000. The average ground rent payable was £50 billed yearly. The lease expired in 2100. Taking into account 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.