It’s a harsh truth that a Tewkesbury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Tewkesbury property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Tewkesbury will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Tewkesbury with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Tewkesbury can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 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.
Off the back of lengthy discussions with the freeholder of her one bedroom flat in Tewkesbury, Gemma started the lease extension process as the 80 year mark was quickly nearing. The legal work completed in January 2011. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were e-mailed by Dr E Rose , who moved into a purpose-built apartment in Tewkesbury in January 1996. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Tewkesbury with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced per annum. The lease elapsed in 2082. Considering the 57 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.
Mr and Mrs. P James moved into a studio flat in Tewkesbury in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Tewkesbury with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed in 2102. Having 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.