On the balance of probabilities where you own a flat in Tewkesbury you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tewkesbury can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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.
Tyler was the the leasehold owner of a studio apartment in Tewkesbury on the market with a lease of a little over fifty eight years unexpired. Tyler informally approached his landlord a well known Manchester-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 to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2012 we were e-mailed by Mr Tommy Morris who, having bought a recently refurbished apartment in Tewkesbury in November 1998. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Tewkesbury with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was in 2103. Given that there were 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Dr M Michel completed a ground floor apartment in Tewkesbury in August 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Tewkesbury with 100 year plus lease were valued about £260,200. The average ground rent payable was £65 billed monthly. The lease elapsed on 10 November 2092. Having 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.