With a domestic leasehold premises in Tisbury, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Leasehold owners in Tisbury with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Tisbury 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 2 bedroom apartment in Tisbury being marketed with a lease of fraction over 59 years unexpired. Jack informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last April we were contacted by Mr and Mrs. K Lee , who moved into a purpose-built flat in Tisbury in February 1995. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar properties in Tisbury with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2085. Given that there were 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.
Last May we were contacted by Dr Lily Anderson , who owned a one bedroom flat in Tisbury in February 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Tisbury with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 6 September 2096. Taking into account 70 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.