Tower Hill leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Tower Hill will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Tower Hill 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.
Half a year ago William, started to get near to the 80-year threshold with the lease on his first floor flat in Tower Hill. In buying his home twenty years previously, the unexpired term was of minimal concern. Luckily, he recognised he needed to take steps soon on Extending the lease. William arranged for a lease extension just in the nick of time last July. William and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,000.
In 2011 we were phoned by Mr Dylan Baker who, having bought a studio apartment in Tower Hill in April 2005. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Tower Hill with an extended lease were in the region of £237,600. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 17 September 2092. Having 67 years left we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus professional charges.
An example of a Freehold Enfranchisement case for a Tower Hill property 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 affected 41 flats. The unexpired lease term was 107 years.