It’s a harsh certainty that a Timsbury residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Timsbury property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Timsbury will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Timsbury with in excess of one hundred years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Timsbury 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 conveyancing solicitor we work with provide it.
Trailing protracted discussions with the freeholder of her purpose-built flat in Timsbury, Lily initiated the lease extension process as the 80 year mark was fast approaching. The transaction completed in May 2007. The landlord’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Dr G Martinez , who acquired a garden flat in Timsbury in July 2001. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable properties in Timsbury with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed annually. The lease ran out on 22 November 2099. Taking into account 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Mrs Kelsey Anderson moved into a garden apartment in Timsbury in February 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Timsbury with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected yearly. The lease elapsed on 16 July 2079. Taking into account 53 years remaining we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.