The market value of a leasehold property in Tewkesbury depends on how many years the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that formalities can be addressed in advance of the 80 year threshold. Current legislation enables Tewkesbury qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Tewkesbury with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 will provide you increased control over the value of your Tewkesbury leasehold, as your property will be more valuable and marketable in respect of 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.
Following lengthy negotiations with the landlord of her first floor apartment in Tewkesbury, Alexandra commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was finalised in May 2011. The freeholder’s charges were restricted to about 550 GBP.
Last month we were e-mailed by Mr and Mrs. P Murphy , who owned a one bedroom apartment in Tewkesbury in March 2002. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Tewkesbury with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2096. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Last Spring we were phoned by Ms Georgina Rogers , who took over the lease of a studio flat in Tewkesbury in March 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical residencies in Tewkesbury with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 billed per annum. The lease concluded on 15 November 2085. Given that there were 59 years remaining we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including professional charges.