As the length of the unexpired term of a Tewkesbury residential lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Tewkesbury will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Tewkesbury with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tewkesbury can be a difficult process. We recommend you secure guidance from a lawyer 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 landlord of her purpose-built flat in Tewkesbury, Kayleigh initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in April 2005. The landlord’s charges were kept to an absolute minimum.
In 2010 we were called by Dr H Ward who, having acquired a garden flat in Tewkesbury in October 2001. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar homes in Tewkesbury with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded on 16 February 2078. Considering the 53 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.
Last Christmas we were approach by Mr Isaac Garcia , who bought a one bedroom flat in Tewkesbury in September 2010. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative homes in Tewkesbury with a long lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease termination date was on 18 February 2098. Given that there were 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.