It’s a harsh truth that a Tonbridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Tonbridge property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Tonbridge will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Tonbridge with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors 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.
Aarav was the the leasehold owner of a 2 bedroom apartment in Tonbridge being marketed with a lease of fraction over sixty years remaining. Aarav informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last November we were e-mailed by Dr L Rodríguez , who was assigned a lease of a ground floor apartment in Tonbridge in July 1999. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar premises in Tonbridge with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expiry date was on 26 February 2103. Having 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.
In 2010 we were e-mailed by Mr Max Lefebvre who, having completed a purpose-built apartment in Tonbridge in May 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar residencies in Tonbridge with a long lease were valued about £183,600. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2083. Given that there were 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.