On the balance of probabilities where you own a flat in Tetbury you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Tetbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tetbury valuers.
Isaac owned a conversion flat in Tetbury on the market with a lease of just over sixty years remaining. Isaac informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Mr Aarav Johnson who, having acquired a one bedroom apartment in Tetbury in September 2002. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparative flats in Tetbury with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 23 February 2076. Considering the 51 years left we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.
Mr and Mrs. T Roux completed a recently refurbished flat in Tetbury in August 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Tetbury with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2087. Given that there were 62 years outstanding we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.