The market value of Tidworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is below than eighty years
Leasehold residencies in Tidworth with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Tidworth 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.
Jack was the the leasehold proprietor of a high value flat in Tidworth on the market with a lease of a little over 72 years left. Jack on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Ms D Anderson acquired a newly refurbished flat in Tidworth in August 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Tidworth with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2106. Taking into account 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. U Bonnet owned a one bedroom apartment in Tidworth in April 2000. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable residencies in Tidworth with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including legals.