Tonbridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Tonbridge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tonbridge you really ought to check if your lease has between seventy and 90 years left. There are compelling reasons why a Tonbridge leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Tonbridge with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The lawyers that we work with procure Tonbridge 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 conveyancing solicitor we work with provide it.
Gabriel was the the leasehold owner of a 2 bedroom flat in Tonbridge being sold with a lease of a few days over 72 years remaining. Gabriel on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Ms Zoe Khan owned a first floor flat in Tonbridge in July 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Tonbridge with a long lease were valued about £218,000. The average ground rent payable was £45 invoiced per annum. The lease concluded in 2088. Given that there were 63 years remaining we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus fees.
In 2011 we were approached by Mr David Ali who, having was assigned a lease of a garden apartment in Tonbridge in September 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar homes in Tonbridge with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease ran out on 22 March 2099. Given that there were 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.