It’s a harsh certainty that a Tetbury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Tetbury property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Tetbury will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Tetbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her basement flat in Tetbury, Stephanie commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension was finalised in January 2007. The freeholder’s costs were negotiated to a tad over 500 pounds.
In 2009 we were e-mailed by Dr Samantha Lefebvre who, having moved into a recently refurbished flat in Tetbury in May 2004. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Tetbury with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired on 20 February 2088. Considering the 62 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.
Last October we were approach by Dr T Wilson , who acquired a ground floor flat in Tetbury in October 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar flats in Tetbury with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2099. Having 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.