On the balance of probabilities if you own a flat in Tenbury Wells you actually own a long leasehold interest over your property
Leasehold residencies in Tenbury Wells with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Tenbury Wells leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months William, came very close to the 80-year mark with the lease on his studio apartment in Tenbury Wells. Having bought his property twenty years ago, the unexpired term was of no significance. Luckily, he realised he needed to take action soon on a lease extension. William extended the lease just in the nick of time last August. William and the landlord in the end settled on the final figure of £5,500 . If the lease had descended below eighty years, the amount would have increased by a minimum £900.
Last Winter we were phoned by Mrs A King , who took over the lease of a studio apartment in Tenbury Wells in February 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical properties in Tenbury Wells with an extended lease were in the region of £168,800. The average amount of ground rent was £60 billed annually. The lease ended on 21 May 2081. Taking into account 55 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
Mr and Mrs. J Reed bought a ground floor flat in Tenbury Wells in March 1999. The question was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Tenbury Wells with a long lease were worth £235,200. The average amount of ground rent was £45 invoiced monthly. The lease expired on 24 October 2092. Given that there were 66 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.