There is no doubt about it a leasehold property in Taverham is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 99 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Taverham will qualify for this right; however a lawyer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a freeholder in Taverham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Taverham valuers.
Ben was the the leasehold proprietor of a studio flat in Taverham on the market with a lease of just over 72 years left. Ben on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Ms S Brown who, having moved into a garden apartment in Taverham in May 2003. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Taverham with 100 year plus lease were valued around £242,600. The mid-range ground rent payable was £45 billed annually. The lease finished in 2092. Given that there were 67 years unexpired we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus expenses.
In 2009 we were phoned by Mr and Mrs. V Adams who, having owned a newly refurbished flat in Taverham in March 2004. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Taverham with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected annually. The lease ran out on 20 January 2103. Taking into account 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.