Tickton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Tickton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tickton you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Tickton leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Tickton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Tickton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tickton valuers.
Jayden owned a conversion apartment in Tickton being sold with a lease of fraction over 72 years unexpired. Jayden informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2014 we were phoned by Mr B Morel who, having acquired a purpose-built apartment in Tickton in July 1998. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative properties in Tickton with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2093. Considering the 68 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2010 we were called by Mrs Hollie Peterson who, having took over the lease of a garden flat in Tickton in October 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Tickton with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected per annum. The lease ended in 2082. Given that there were 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.