When it comes to residential leasehold premises in Tenbury Wells, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Anyone in Tenbury Wells with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has fewer than 80 years remaining, under the current Act the landlord can calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Logan was the the leasehold owner of a conversion flat in Tenbury Wells being sold with a lease of a little over 59 years outstanding. Logan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last Winter we were e-mailed by Mr Jake Bennett , who took over the lease of a garden apartment in Tenbury Wells in April 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Tenbury Wells with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2076. Considering the 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus legals.
Mr and Mrs. O Rogers took over the lease of a studio flat in Tenbury Wells in July 2005. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Tenbury Wells with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed on 21 August 2087. Given that there were 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of expenses.