The re-sale value of a leasehold property in Tanworth In Arden depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed well before the 80 year mark. Current legislation entitles Tanworth In Arden qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Tanworth In Arden with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Tanworth In Arden leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her first floor flat in Tanworth In Arden, Amber commenced the lease extension process as the 80 year threshold was rapidly approaching. The transaction was finalised in November 2010. The landlord’s charges were kept to an absolute minimum.
Last year we were contacted by Mr G Howard , who completed a studio flat in Tanworth In Arden in April 2010. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Tanworth In Arden with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded on 22 October 2102. Given that there were 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Dr A Roux moved into a one bedroom flat in Tanworth In Arden in July 1997. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Tanworth In Arden with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expiry date was on 2 June 2091. Given that there were 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.