Tewkesbury leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Tewkesbury will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Tewkesbury with more than 100 years left 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 buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tewkesbury can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tewkesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her two bedroom apartment in Tewkesbury, Louise initiated the lease extension process as the eighty year threshold was fast advancing. The lease extension was finalised in October 2011. The landlord’s costs were kept to an absolute minimum.
In 2012 we were contacted by Dr R Cook who, having completed a first floor flat in Tewkesbury in March 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Tewkesbury with a long lease were valued around £174,200. The average ground rent payable was £55 billed quarterly. The lease expiry date was on 24 September 2077. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
In 2014 we were e-mailed by Mr and Mrs. E Ward who, having completed a first floor flat in Tewkesbury in May 1999. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable homes in Tewkesbury with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease concluded on 27 August 2097. Taking into account 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.