Tewkesbury leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Flat owners in Tewkesbury will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Tewkesbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tewkesbury valuers.
Theo was the the leasehold owner of a 2 bedroom apartment in Tewkesbury being marketed with a lease of just over sixty years unexpired. Theo informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last July we were e-mailed by Mr and Mrs. U Mitchell , who owned a garden flat in Tewkesbury in June 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Tewkesbury with a long lease were worth £181,600. The average ground rent payable was £55 collected every twelve months. The lease lapsed in 2078. Given that there were 52 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Mr and Mrs. F Khan took over the lease of a basement flat in Tewkesbury in March 2006. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Tewkesbury with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease expiry date was on 10 April 2098. Given that there were 72 years unexpired we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus fees.