With a long leasehold premises in Tamworth, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Residents in Tamworth with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Tamworth with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Tamworth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Henry, started to get close to the 80-year mark with the lease on his ground floor flat in Tamworth. In buying his home two decades ago, the length of the lease was of minimal concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Henry was able to extend his lease at the eleventh hour in April. Henry and the freeholder in the end settled on the final figure of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,075.
Last Autumn we were phoned by Mr R Simon , who acquired a one bedroom flat in Tamworth in May 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Tamworth with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended on 27 February 2094. Given that there were 68 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Last Spring we were contacted by Dr Joshua King , who took over the lease of a garden apartment in Tamworth in October 1999. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Tamworth with a long lease were valued around £213,600. The average ground rent payable was £60 collected yearly. The lease terminated in 2083. Considering the 57 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.