The only way is down when it comes to Tunbridge Wells lease terms. Tunbridge Wells flats that have a lease term shorter than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold properties in Tunbridge Wells with over 100 years left 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service will provide you increased control over the value of your Tunbridge Wells leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a 2 bedroom flat in Tunbridge Wells on the market with a lease of just over 59 years outstanding. Ollie informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr Hunter Girard moved into a one bedroom flat in Tunbridge Wells in April 2003. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar flats in Tunbridge Wells with a long lease were in the region of £295,000. The average ground rent payable was £45 invoiced quarterly. The lease end date was on 16 August 2099. Having 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Last Spring we were phoned by Mr Callum James , who acquired a one bedroom apartment in Tunbridge Wells in July 2008. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable flats in Tunbridge Wells with an extended lease were worth £248,000. The average ground rent payable was £65 collected quarterly. The lease finished in 2088. Having 63 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.