Tisbury leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Tisbury tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Tisbury you would be well advised to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Tisbury with more than one hundred years left on the lease are often regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Tisbury can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tisbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Luca, started to get near to the 80-year mark with the lease on his garden apartment in Tisbury. In buying his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Luca was able to extend his lease just under the wire last May. Luca and the freeholder eventually settled on a premium of £5,500 . If the lease had gone to less than eighty years, the figure would have become more exhorbitant by a minimum £875.
Mr and Mrs. S Williams completed a one bedroom apartment in Tisbury in October 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Tisbury with a long lease were worth £265,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 18 August 2099. Given that there were 74 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2009 we were contacted by Dr S Moore who, having purchased a ground floor flat in Tisbury in January 2000. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Tisbury with an extended lease were in the region of £166,400. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2079. Given that there were 54 years remaining we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.