There is no doubt about it a leasehold property in Tickton is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Tickton will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Tickton with more than 100 years unexpired on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake Tickton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the landlord of her basement flat in Tickton, Sarah started the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was finalised in October 2011. The freeholder’s costs were kept to an absolute minimum.
Mr Hugo Cooper moved into a purpose-built apartment in Tickton in June 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical premises in Tickton with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 billed annually. The lease lapsed in 2092. Taking into account 67 years left we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus legals.
Last Christmas we were phoned by Dr R Flores , who was assigned a lease of a garden apartment in Tickton in May 2005. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable properties in Tickton with an extended lease were in the region of £201,200. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 19 July 2081. Having 56 years outstanding we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.