Why you should commence your Tidworth lease extension

Why you should commence your Tidworth lease extension today:

Increase your lease and increase your Tidworth property value

Tidworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Tidworth tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tidworth you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Tidworth with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not lend on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This may cause difficulties when you need to dispose of or refinance your flat as it will be effectively unmortgageable. You might have no imminent plan to sell but when you do your buyer will have to wait 2 years before they can exercise the right to a an extension to the lease.

Get in touch with one of our Tidworth lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Tidworth,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 Tidworth valuers.

Tidworth Lease Extension Example Cases:

Anna, Tidworth, Wiltshire,

Following lengthy discussions with the freeholder of her purpose-built flat in Tidworth, Anna initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was finalised in October 2006. The freeholder’s charges were restricted to under 450 pounds.

Tidworth case:

In 2009 we were e-mailed by Ms Mollie Fournier who, having acquired a studio flat in Tidworth in March 2009. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative flats in Tidworth with a long lease were valued about £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2082. Considering the 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.

Tidworth case:

Last month we were phoned by Mr and Mrs. E Parker , who acquired a one bedroom flat in Tidworth in June 2004. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Tidworth with an extended lease were worth £242,600. The mid-range ground rent payable was £45 billed per annum. The lease expiry date was in 2093. Considering the 67 years outstanding we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.