When it comes to domestic leasehold property in Tower Hill, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years remaining. Residents in Tower Hill with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Tower Hill with more than one hundred years left on the lease are often regarded as a ‘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 estate 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a landlord in Tower Hill,the lease extension lawyers 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 Tower Hill valuers.
Off the back of unsuccessful discussions with the landlord of her ground floor apartment in Tower Hill, Catherine initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was finalised in July 2015. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. J Peterson who, having bought a purpose-built apartment in Tower Hill in October 2004. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable properties in Tower Hill with a long lease were valued about £193,400. The average amount of ground rent was £65 collected monthly. The lease elapsed on 24 April 2085. Having 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Tower Hill premises is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case was in relation to 41 flats. The remaining number of years on the lease was 107 years.