Tanworth In Arden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Tanworth In Arden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tanworth In Arden you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| 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. |
The lawyers that we work with handle Tanworth In Arden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Sam, started to get close to the eighty-year threshold with the lease on his basement apartment in Tanworth In Arden. Having purchased his property 19 years previously, the lease term was of little significance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Sam was able to extend his lease just in the nick of time in January. Sam and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If the lease had fallen lower than 80 years, the price would have escalated by at least £900.
Dr Alisha Mitchell bought a one bedroom flat in Tanworth In Arden in April 1996. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable flats in Tanworth In Arden with an extended lease were in the region of £166,800. The average amount of ground rent was £55 collected per annum. The lease lapsed in 2075. Considering the 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.
Last Winter we were contacted by Mr and Mrs. Y Kelly , who completed a first floor flat in Tanworth In Arden in January 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Tanworth In Arden with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 billed annually. The lease expired in 2095. Having 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.