Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Tenbury Wells. Inevitably, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Tenbury Wells have the right to extend the lease for an additional 90 years under statute. Please give due deliberation before putting off your Tenbury Wells lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Tenbury Wells,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 experience and the close ties they enjoy with Tenbury Wells valuers.
Last October George, started to get close to the 80-year threshold with the lease on his leasehold apartment in Tenbury Wells. Having bought his flat 19 years previously, the unexpired term was of little significance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. George arranged for a lease extension just in the nick of time last August. George and the landlord ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have gone up by at least £875.
In 2013 we were approached by Dr Grace Rogers who, having took over the lease of a one bedroom flat in Tenbury Wells in November 2012. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative residencies in Tenbury Wells with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2097. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2009 we were called by Dr Sarah Sharif who, having owned a garden apartment in Tenbury Wells in March 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable homes in Tenbury Wells with 100 year plus lease were valued about £256,600. The average amount of ground rent was £60 collected monthly. The lease ran out in 2077. Considering the 52 years outstanding we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of expenses.