Tenby residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Tenby with in excess of one hundred years outstanding on the lease are sometimes 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 to be gained by buying the reversionary interest 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Tenby can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Tenby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold proprietor of a 2 bedroom apartment in Tenby on the market with a lease of a little over fifty eight years outstanding. Mason informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. I Laurent acquired a one bedroom flat in Tenby in November 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Tenby with 100 year plus lease were valued around £210,600. The average ground rent payable was £45 billed per annum. The lease ended on 25 September 2087. Considering the 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
Mr Aarav Jones bought a basement flat in Tenby in September 2008. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Tenby with a long lease were valued around £265,000. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2098. Taking into account 73 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.