The closer a domestic lease in Tidworth nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Tidworth will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Tidworth,the lease extension lawyers 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.
Oliver owned a 2 bedroom flat in Tidworth being marketed with a lease of fraction over 59 years unexpired. Oliver on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last year we were approach by Dr E Gray , who moved into a ground floor flat in Tidworth in November 1998. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Tidworth with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2098. Given that there were 73 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Summer we were phoned by Mr and Mrs. T Parker , who bought a one bedroom flat in Tidworth in January 1996. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Tidworth with a long lease were in the region of £264,000. The average amount of ground rent was £60 invoiced annually. The lease elapsed in 2078. Considering the 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including expenses.