The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Tonbridge may extend the lease for a further ninety years in accordance with legislation. Do think carefully before delaying your Tonbridge lease extension. Postponing that expense today simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold properties in Tonbridge with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Tonbridge leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a conversion flat in Tonbridge being sold with a lease of fraction over fifty eight years outstanding. Freddie on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr H Hernández purchased a ground floor flat in Tonbridge in August 2005. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical properties in Tonbridge with a long lease were worth £227,800. The average amount of ground rent was £45 collected yearly. The lease ended on 14 August 2091. Given that there were 65 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
Last Summer we were phoned by Mr and Mrs. Y Fournier , who completed a basement flat in Tonbridge in May 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Tonbridge with a long lease were valued about £275,000. The average ground rent payable was £55 billed per annum. The lease ended in 2102. Taking into account 76 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.