Tickton residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Tickton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Tickton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Isaac, started to get near to the eighty-year threshold with the lease on his basement apartment in Tickton. Having bought his flat 18 years ago, the length of the lease was of no bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Isaac was able to extend his lease just ahead of time in March. Isaac and the landlord eventually settled on an amount of £5,000 . If the lease had fallen lower than 80 years, the figure would have become more costly by a minimum £1,100.
Mrs E Martin purchased a one bedroom apartment in Tickton in October 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Tickton with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 11 April 2104. Taking into account 79 years remaining we approximated the premium to the landlord for the lease extension to be between £7,600 and £8,800 not including legals.
Last Autumn we were approach by Mr and Mrs. B Lambert , who completed a purpose-built apartment in Tickton in September 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable properties in Tickton with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced annually. The lease ended on 13 July 2093. Given that there were 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.