On the balance of probabilities where you own a flat in Tisbury you actually own a long leasehold interest over your property
Leasehold premises in Tisbury with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Tisbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Liam was the the leasehold owner of a 2 bedroom flat in Tisbury being sold with a lease of a few days over sixty years outstanding. Liam informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. E Lee who, having completed a first floor flat in Tisbury in August 2012. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Tisbury with an extended lease were valued around £183,600. The average amount of ground rent was £65 billed quarterly. The lease elapsed in 2083. Considering the 57 years as a residual term we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
Last year we were e-mailed by Mr E Reed , who owned a one bedroom flat in Tisbury in June 2008. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical premises in Tisbury with a long lease were valued around £245,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2094. Given that there were 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.