As the the remaining lease term of a Tunbridge Wells domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Tunbridge Wells will qualify for this right; however a conveyancer 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.
Leasehold residencies in Tunbridge Wells with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Tunbridge Wells,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tunbridge Wells valuers.
During the course of the last few months Riley, came precariously close to the 80-year threshold with the lease on his garden flat in Tunbridge Wells. In buying his home twenty years previously, the lease term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Riley extended the lease just in the nick of time in June. Riley and the freeholder eventually settled on an amount of £6,000 . If the lease had fallen to less than eighty years, the sum would have become more exhorbitant by a minimum £850.
In 2011 we were approached by Mrs Lauren Bonnet who, having purchased a purpose-built apartment in Tunbridge Wells in April 2008. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Tunbridge Wells with 100 year plus lease were in the region of £248,000. The average amount of ground rent was £65 billed annually. The lease expired on 20 March 2089. Having 63 years remaining we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
In 2013 we were e-mailed by Mr and Mrs. I Roux who, having purchased a one bedroom flat in Tunbridge Wells in May 1998. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparable residencies in Tunbridge Wells with a long lease were worth £184,000. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2079. Considering the 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.