With a residential leasehold premises in Tetbury, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long 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 becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Tetbury with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than 80 years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Tetbury with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Tetbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tetbury valuers.
In 2014 Aiden, started to get close to the 80-year mark with the lease on his one bedroom apartment in Tetbury. Having purchased his flat 18 years ago, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Aiden arranged for a lease extension just in the nick of time last March. Aiden and the freeholder eventually settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £1,075.
In 2012 we were phoned by Dr T Lee who, having was assigned a lease of a purpose-built flat in Tetbury in June 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative residencies in Tetbury with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced per annum. The lease concluded in 2084. Given that there were 59 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.
Mr Henry Cox took over the lease of a basement apartment in Tetbury in May 1995. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Tetbury with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease finished on 11 May 2095. Having 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.