Tickton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Tickton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tickton you really ought to see if your lease has between 70 and ninety years left. There are compelling reasons why a Tickton flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Tickton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Tickton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tickton valuers.
In the wake of 6 months of protracted discussions with the landlord of her first floor apartment in Tickton, Isabelle commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction completed in January 2006. The landlord’s charges were negotiated to approximately 600 GBP.
Mrs V Martin moved into a garden flat in Tickton in March 2009. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Tickton with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 1 March 2097. Having 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Last Summer we were e-mailed by Ms G Hill , who acquired a recently refurbished apartment in Tickton in June 1995. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Tickton with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2086. Having 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.