The re-sale value of a leasehold property in Tenbury Wells is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be addressed in advance of the eighty year mark. Current legislation entitles Tenbury Wells qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Tenbury Wells,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 Tenbury Wells valuers.
Off the back of unsuccessful negotiations with the landlord of her leasehold apartment in Tenbury Wells, Sian started the lease extension process as the eighty year mark was rapidly nearing. The lease extension was finalised in May 2013. The freeholder’s charges were restricted to slightly above 450 pounds.
In 2013 we were contacted by Mrs Mollie Hernández who, having acquired a basement flat in Tenbury Wells in May 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Tenbury Wells with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 18 May 2105. Taking into account 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
Last Summer we were called by Mrs M Mercier , who moved into a newly refurbished flat in Tenbury Wells in October 2012. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative homes in Tenbury Wells with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2085. Given that there were 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.