Tewkesbury residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold properties in Tewkesbury with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
Lease extensions in Tewkesbury can be a difficult process. We recommend you get guidance 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 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.
Callum was the the leasehold proprietor of a studio apartment in Tewkesbury on the market with a lease of a little over fifty eight years left. Callum informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2013 we were e-mailed by Ms K Dupont who, having owned a first floor flat in Tewkesbury in April 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Tewkesbury with a long lease were in the region of £300,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was on 27 November 2101. Considering the 75 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. N White owned a newly refurbished flat in Tewkesbury in July 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Tewkesbury with a long lease were worth £250,400. The average amount of ground rent was £65 billed quarterly. The lease expired in 2090. Taking into account 64 years remaining we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.