Tadworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Tadworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tadworth you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Tadworth flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, 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 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Tadworth can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Tadworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Ibrahim, came dangerously near to the eighty-year mark with the lease on his studio apartment in Tadworth. Having purchased his property 19 years previously, the unexpired term was of minimal importance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Ibrahim arranged for a lease extension at the eleventh hour in March. Ibrahim and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had dipped below 80 years, the amount would have gone up by a minimum £875.
In 2014 we were called by Mrs J Collins who, having took over the lease of a newly refurbished flat in Tadworth in November 2007. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Tadworth with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated on 24 September 2097. Taking into account 71 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Tadworth premises 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 related to 1 flat. The unexpired term as at the valuation date was 60.43 years.