With a residential leasehold property in Tanworth In Arden, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be 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. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Leasehold owners in Tanworth In Arden with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has less than 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Tanworth In Arden with more than 100 years unexpired on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Tanworth In Arden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tanworth In Arden valuers.
18 months ago Tyler, started to get close to the 80-year mark with the lease on his purpose- built flat in Tanworth In Arden. Having purchased his flat 18 years previously, the unexpired term was of no relevance. by good luck, he became aware that he needed to take action soon on a lease extension. Tyler arranged for a lease extension just ahead of time in September. Tyler and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had descended to less than 80 years, the premium would have increased by a minimum £950.
Ms P Cox moved into a garden apartment in Tanworth In Arden in April 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Tanworth In Arden with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 20 November 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
Mr A Jackson purchased a studio apartment in Tanworth In Arden in May 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Tanworth In Arden with a long lease were valued around £267,600. The mid-range ground rent payable was £65 collected annually. The lease terminated on 28 June 2093. Having 67 years left we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus expenses.