Tenbury Wells leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Tenbury Wells will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a freeholder in Tenbury Wells,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tenbury Wells valuers.
Last Autumn Jackson, came dangerously close to the eighty-year mark with the lease on his ground floor apartment in Tenbury Wells. In buying his property two decades ago, the length of the lease was of minimal importance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Jackson arranged for a lease extension just ahead of time last June. Jackson and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had descended below 80 years, the premium would have increased by a minimum £1,000.
Last month we were e-mailed by Mrs Georgina Gunderson , who bought a one bedroom apartment in Tenbury Wells in May 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Tenbury Wells with an extended lease were valued around £242,600. The average amount of ground rent was £45 collected quarterly. The lease terminated on 16 August 2093. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus professional charges.
Last month we were called by Mr and Mrs. G Martínez , who bought a purpose-built apartment in Tenbury Wells in November 1996. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar residencies in Tenbury Wells with a long lease were worth £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 18 April 2104. Given that there were 78 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.