There is no doubt about it a leasehold flat or house in Tewkesbury is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Tewkesbury will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Tewkesbury with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Tewkesbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her garden flat in Tewkesbury, Poppy initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The transaction completed in May 2012. The landlord’s costs were restricted to below 550 GBP.
Dr L Clark was assigned a lease of a one bedroom flat in Tewkesbury in November 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative residencies in Tewkesbury with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2076. Having 50 years remaining we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus professional charges.
Last October we were contacted by Dr M Dupont , who took over the lease of a recently refurbished flat in Tewkesbury in October 2011. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Similar flats in Tewkesbury with an extended lease were valued around £280,000. The average amount of ground rent was £45 collected every twelve months. The lease finished in 2096. Given that there were 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.