As the the remaining lease term of a Tonbridge domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Tonbridge will meet the qualifying criteria; that being said a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Tonbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tonbridge valuers.
Half a year ago Dexter, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Tonbridge. Having bought his home 19 years previously, the length of the lease was of no concern. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Dexter was able to extend his lease just ahead of time last April. Dexter and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,025.
In 2009 we were phoned by Dr L Williams who, having bought a one bedroom flat in Tonbridge in August 2004. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable residencies in Tonbridge with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease expiry date was in 2095. Taking into account 70 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Winter we were contacted by Dr V Simon , who completed a one bedroom apartment in Tonbridge in November 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Tonbridge with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2075. Considering the 50 years outstanding we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including costs.