As the length of the unexpired term of a Tetbury residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Tetbury will meet the qualifying criteria; that being said a lawyer can advise whether you qualify 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.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Tetbury,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tetbury valuers.
Subsequent to protracted correspondence with the landlord of her leasehold apartment in Tetbury, Jade initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was finalised in July 2011. The freeholder’s charges were restricted to under 450 GBP.
Last Christmas we were approach by Mr I Ward , who was assigned a lease of a purpose-built apartment in Tetbury in June 1996. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative properties in Tetbury with 100 year plus lease were worth £250,000. The average ground rent payable was £50 collected annually. The lease terminated in 2095. Having 69 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Last Autumn we were phoned by Mr J Carter , who moved into a first floor flat in Tetbury in June 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Tetbury with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease concluded on 19 June 2106. Given that there were 80 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.