There is no doubt about it a leasehold flat or house in Tetbury is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Tetbury will qualify for this right; however a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Tetbury with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle 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.
Cameron was the the leasehold owner of a 2 bedroom apartment in Tetbury on the market with a lease of a little over fifty eight years outstanding. Cameron informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last April we were approach by Dr T Morgan , who bought a one bedroom apartment in Tetbury in July 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Tetbury with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 4 August 2083. Having 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Last Autumn we were called by Dr W David , who bought a garden apartment in Tetbury in October 2000. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar properties in Tetbury with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease terminated in 2094. Considering the 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.