The nearer a residential lease in Tewkesbury nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Tewkesbury will qualify for this right; that being said a conveyancer will be able to advise whether you qualify to extend your lease. 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.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Tewkesbury can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Tewkesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Evan, started to get close to the eighty-year mark with the lease on his studio apartment in Tewkesbury. In buying his flat two decades ago, the lease term was of minimal relevance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Evan extended the lease just ahead of time last June. Evan and the freeholder in the end settled on a premium of £5,000 . If he not met the deadline, the figure would have increased by at least £1,050.
In 2012 we were phoned by Mr H Scott who, having moved into a basement flat in Tewkesbury in June 1999. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Tewkesbury with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 19 June 2077. Having 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
Last June we were phoned by Mr K Wilson , who was assigned a lease of a purpose-built flat in Tewkesbury in August 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar properties in Tewkesbury with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 24 July 2097. Taking into account 73 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.