As the length of the unexpired term of a Tonbridge residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Tonbridge will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Tonbridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tonbridge valuers.
Following protracted negotiations with the landlord of her ground floor apartment in Tonbridge, Imogen started the lease extension process as the eighty year mark was fast advancing. The lease extension completed in March 2008. The landlord’s costs were kept to an absolute minimum.
Dr W Evans owned a ground floor apartment in Tonbridge in July 2010. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Tonbridge with an extended lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease elapsed in 2100. Considering the 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr L Vincent moved into a garden apartment in Tonbridge in April 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Tonbridge with an extended lease were valued around £173,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 24 February 2080. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.