When it comes to long leasehold premises in Tidworth, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Tidworth with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has under eighty years remaining, under the current statute the freeholder can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her ground floor flat in Tidworth, Anna started the lease extension process as the 80 year deadline was rapidly coming. The transaction was finalised in September 2008. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. D Nelson took over the lease of a one bedroom flat in Tidworth in April 1995. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparable premises in Tidworth with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 collected annually. The lease concluded in 2094. Taking into account 68 years remaining we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including expenses.
Ms Rhiannon Mercier acquired a basement apartment in Tidworth in March 2002. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Tidworth with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 invoiced monthly. The lease ran out in 2105. Considering the 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.