The market value of Tewkesbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is below than eighty years
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Tewkesbury can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
Subsequent to protracted negotiations with the freeholder of her two bedroom apartment in Tewkesbury, Erin commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work was concluded in February 2012. The landlord’s fees were negotiated to a tad over 550 GBP.
Last Spring we were called by Dr Y White , who completed a studio apartment in Tewkesbury in April 1996. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative residencies in Tewkesbury with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 collected yearly. The lease finished in 2090. Given that there were 65 years outstanding we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.
In 2012 we were called by Mr Evan Hernández who, having was assigned a lease of a one bedroom apartment in Tewkesbury in November 2007. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparable residencies in Tewkesbury with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease expired on 20 March 2079. Taking into account 54 years left we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus legals.