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 more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tenbury Wells can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Tenbury Wells lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Tenbury Wells, Maisie commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction completed in October 2010. The landlord’s charges were restricted to less than four hundred GBP.
Mr and Mrs. G Gray was assigned a lease of a purpose-built apartment in Tenbury Wells in June 2000. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Tenbury Wells with a long lease were valued around £200,800. The average amount of ground rent was £65 collected annually. The lease ran out on 15 May 2086. Given that there were 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including professional charges.
Last Spring we were phoned by Mr E Gray , who moved into a one bedroom flat in Tenbury Wells in January 2010. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Tenbury Wells with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2097. Taking into account 71 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.