The market value of Tamworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is below than 80 years
Leasehold properties in Tamworth with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Tamworth can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 Tamworth 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 Riley, came perilously near to the 80-year mark with the lease on his studio apartment in Tamworth. In buying his home two decades ago, the unexpired term was of no bearing. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Riley was able to extend his lease just under the wire last March. Riley and the landlord ultimately agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £950.
In 2013 we were called by Ms Millie Collins who, having took over the lease of a recently refurbished flat in Tamworth in February 2008. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Tamworth with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 27 May 2096. Taking into account 71 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Summer we were contacted by Mr S Campbell , who moved into a one bedroom apartment in Tamworth in July 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Tamworth with an extended lease were valued around £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired on 7 February 2085. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including expenses.