The only way is down when it comes to Tenbury Wells lease terms. Tenbury Wells properties that have a remaining term fewer than eighty years will reduce in value even faster, and the cost to extend your lease will rise.
Leasehold properties in Tenbury Wells with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 landlord in Tenbury Wells,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tenbury Wells valuers.
Henry owned a 2 bedroom apartment in Tenbury Wells being marketed with a lease of a few days over fifty eight years unexpired. Henry on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr Chloe Phillips owned a newly refurbished flat in Tenbury Wells in November 2000. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative homes in Tenbury Wells with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed in 2094. Considering the 69 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Mrs Erin Moore purchased a studio apartment in Tenbury Wells in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Tenbury Wells with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded in 2105. Taking into account 80 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.