Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Tetbury. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Tetbury have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before delaying your Tetbury lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Tetbury leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Milo, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Tetbury. Having purchased his flat 18 years ago, the lease term was of little importance. Luckily, he became aware that he needed to take steps soon on a lease extension. Milo arranged for a lease extension just in the nick of time in April. Milo and the landlord subsequently settled on a premium of £5,000 . If the lease had dropped to less than eighty years, the sum would have increased by a minimum £975.
Dr Isaac Simon was assigned a lease of a one bedroom flat in Tetbury in April 2007. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Tetbury with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease finished on 8 January 2076. Considering the 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.
Last year we were contacted by Dr Harrison Rodríguez , who moved into a first floor flat in Tetbury in September 1996. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative homes in Tetbury with a long lease were worth £203,200. The average ground rent payable was £65 invoiced yearly. The lease finished in 2087. Taking into account 61 years left we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.