With a domestic leasehold property in Tonbridge, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Residents in Tonbridge with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has less than eighty years remaining, under the current statute the freeholder can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Tonbridge with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Tonbridge can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience procuring Tonbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Archie, started to get close to the 80-year mark with the lease on his studio apartment in Tonbridge. In buying his flat 19 years ago, the unexpired term was of minimal significance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Archie arranged for a lease extension at the eleventh hour in June. Archie and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the price would have escalated by at least £925.
Last Christmas we were e-mailed by Dr Reuben Clark , who owned a ground floor apartment in Tonbridge in September 1995. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable residencies in Tonbridge with an extended lease were in the region of £264,000. The average amount of ground rent was £60 invoiced annually. The lease ended in 2079. Having 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of legals.
Mrs Jordan Young acquired a one bedroom flat in Tonbridge in April 2008. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Tonbridge with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed on 19 January 2090. Taking into account 64 years remaining we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.