Tedburn St Mary leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Tedburn St Mary residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Tedburn St Mary you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Tedburn St Mary with in excess of 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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tedburn St Mary can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 dealing with Tedburn St Mary lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her ground floor flat in Tedburn St Mary, Niamh started the lease extension process just as the lease was approaching the critical eighty-year threshold. The legal work was finalised in October 2009. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. P Bonnet , who owned a garden flat in Tedburn St Mary in November 1998. The question was if we could estimate the price could be for a ninety year extension to my lease. Similar homes in Tedburn St Mary with a long lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish on 19 January 2078. Having 52 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Last Winter we were called by Mr E Cook , who was assigned a lease of a first floor flat in Tedburn St Mary in May 2011. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical residencies in Tedburn St Mary with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out in 2098. Having 72 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.