When it comes to domestic leasehold premises in Tadworth, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Tadworth with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Tadworth can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 Tadworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Sebastian, came critically near to the 80-year threshold with the lease on his studio apartment in Tadworth. Having bought his home twenty years previously, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Sebastian extended the lease just under the wire in June. Sebastian and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had gone below eighty years, the price would have increased by a minimum £1,100.
Last Spring we were phoned by Dr G Cooper , who was assigned a lease of a basement flat in Tadworth in January 2002. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Tadworth with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed annually. The lease elapsed on 23 February 2082. Taking into account 57 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Tadworth property is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case affected 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.