It’s an underpublicised certainty that a Tadley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Tadley property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Tadley will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Tadley with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Tadley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience procuring Tadley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her basement apartment in Tadley, Grace commenced the lease extension process as the eighty year deadline was fast nearing. The legal work completed in January 2005. The landlord’s fees were restricted to below 450 GBP.
In 2009 we were approached by Mr H Michel who, having owned a garden flat in Tadley in May 1996. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Tadley with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed annually. The lease ran out on 17 July 2096. Having 70 years unexpired we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including costs.
Mr Ryan King purchased a first floor apartment in Tadley in January 1999. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical flats in Tadley with a long lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 16 October 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of costs.