With a long leasehold premises in Tadley, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in Tadley with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has less than eighty years remaining, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Tadley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tadley valuers.
Ollie owned a high value apartment in Tadley on the market with a lease of a little over fifty eight years left. Ollie informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Ms Tia Brooks moved into a one bedroom apartment in Tadley in September 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Tadley with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2081. Taking into account 56 years unexpired we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus fees.
Last Christmas we were contacted by Mr Jackson Bennett , who acquired a ground floor flat in Tadley in February 2009. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable flats in Tadley with a long lease were in the region of £242,600. The average amount of ground rent was £45 collected monthly. The lease concluded in 2092. Given that there were 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.