Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Tewkesbury. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Tewkesbury have the right to extend the lease for an additional ninety years under statute. Do give due consideration before putting off your Tewkesbury lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Tewkesbury,the lease extension lawyers 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.
Cameron was the the leasehold proprietor of a 2 bedroom flat in Tewkesbury on the market with a lease of a few days over 61 years remaining. Cameron on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were phoned by Mrs K Howard , who was assigned a lease of a ground floor apartment in Tewkesbury in May 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable flats in Tewkesbury with an extended lease were worth £225,800. The average ground rent payable was £60 collected annually. The lease lapsed in 2086. Having 60 years remaining we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including professional charges.
Mr I Morel took over the lease of a newly refurbished flat in Tewkesbury in July 1998. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Tewkesbury with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed every twelve months. The lease concluded in 2106. Given that there were 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.