With a long leasehold property in Tetbury, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Tetbury with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with procure Tetbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy correspondence with the freeholder of her purpose-built flat in Tetbury, Abigail initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in October 2005. The landlord’s fees were negotiated to below 550 GBP.
Ms G Moreau completed a garden flat in Tetbury in February 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar homes in Tetbury with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease expiry date was in 2082. Given that there were 56 years outstanding we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.
Last Christmas we were e-mailed by Mr and Mrs. P Collins , who completed a purpose-built apartment in Tetbury in May 2012. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in Tetbury with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 invoiced annually. The lease concluded on 10 July 2093. Having 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.