Unfortunately that a Tadcaster residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Tadcaster property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Tadcaster will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Tadcaster leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a studio apartment in Tadcaster on the market with a lease of fraction over 72 years unexpired. Connor on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were phoned by Mrs Rosie Mercier who, having acquired a recently refurbished apartment in Tadcaster in November 2007. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Tadcaster with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded in 2076. Given that there were 51 years unexpired we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
In 2014 we were contacted by Ms I Cox who, having moved into a one bedroom apartment in Tadcaster in June 2012. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Tadcaster with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 billed annually. The lease lapsed in 2096. Considering the 71 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.