Talbot Green leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Talbot Green tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Talbot Green you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Talbot Green with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| 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. |
Lease extensions in Talbot Green can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge procuring Talbot Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her one bedroom apartment in Talbot Green, Abbie commenced the lease extension process as the eighty year mark was fast coming. The transaction was concluded in February 2009. The freeholder’s costs were negotiated to slightly above 500 GBP.
Last Autumn we were phoned by Mr and Mrs. R Lambert , who took over the lease of a garden flat in Talbot Green in March 2001. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical premises in Talbot Green with a long lease were in the region of £168,800. The average amount of ground rent was £60 collected annually. The lease terminated on 12 April 2080. Given that there were 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.
In 2014 we were called by Dr Kian Moreau who, having completed a basement flat in Talbot Green in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar properties in Talbot Green with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 6 September 2091. Given that there were 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.