When it comes to long leasehold property in Tetbury, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Residents in Tetbury with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Tetbury with over one hundred years outstanding on the lease are often 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 better control over the value of your Tetbury leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Kai, started to get close to the 80-year threshold with the lease on his leasehold apartment in Tetbury. Having bought his flat 18 years previously, the lease term was of little bearing. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Kai arranged for a lease extension just under the wire in August. Kai and the freeholder subsequently agreed on an amount of £6,000 . If the lease had gone below eighty years, the price would have escalated by a minimum £925.
In 2012 we were called by Mr P Dupont who, having took over the lease of a studio flat in Tetbury in February 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Tetbury with an extended lease were valued around £265,000. The average amount of ground rent was £50 billed quarterly. The lease terminated on 28 November 2100. Considering the 74 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last Winter we were contacted by Ms O Stewart , who moved into a studio apartment in Tetbury in June 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Tetbury with an extended lease were worth £166,400. The mid-range ground rent payable was £60 invoiced per annum. The lease ended in 2080. Given that there were 54 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.