The market value of a leasehold property in Tickton depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year mark. Current legislation enables Tickton qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Tickton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
In the wake of 9 months of unsuccessful discussions with the freeholder of her garden apartment in Tickton, Olivia initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work completed in April 2010. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. F Martin who, having completed a studio apartment in Tickton in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Tickton with a long lease were worth £225,800. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed on 8 April 2085. Taking into account 60 years remaining we estimated the premium to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of professional charges.
Last Christmas we were phoned by Mrs C Bernard , who purchased a one bedroom flat in Tickton in April 2000. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar properties in Tickton with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 collected annually. The lease ran out in 2105. Given that there were 80 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.