With a domestic leasehold premises in Tickton, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Tickton with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Tickton with over 100 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Tickton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Riley, came seriously close to the 80-year threshold with the lease on his first floor flat in Tickton. Having purchased his property two decades ago, the unexpired term was of little relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Riley was able to extend his lease just under the wire last June. Riley and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £925.
Ms O Roberts bought a one bedroom flat in Tickton in January 2002. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar premises in Tickton with an extended lease were worth £216,000. The average amount of ground rent was £60 billed per annum. The lease ran out in 2084. Having 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
Last Christmas we were phoned by Mr Matthew Bonnet , who took over the lease of a purpose-built apartment in Tickton in July 2008. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar residencies in Tickton with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease lapsed on 23 January 2104. Taking into account 78 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.