The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Tamworth have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Tamworth lease extension. Shelving that expense today simply increases the amount you will eventually have to pay for a lease extension.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Halifax | 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 |
Lease extensions in Tamworth can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience 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.
James was the the leasehold owner of a high value flat in Tamworth on the market with a lease of a little over 72 years unexpired. James on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last year we were called by Mr and Mrs. L Mitchell , who moved into a one bedroom apartment in Tamworth in July 2000. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative flats in Tamworth with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 15 September 2087. Given that there were 61 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.
Mr and Mrs. U Fournier was assigned a lease of a ground floor apartment in Tamworth in May 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Tamworth with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 collected annually. The lease ended on 19 February 2076. Taking into account 50 years left we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.