Tunstall leases on residential deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Tunstall will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tunstall can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Tunstall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Omar, came critically near to the eighty-year mark with the lease on his studio flat in Tunstall. Having bought his home 18 years ago, the unexpired term was of minimal significance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Omar extended the lease at the eleventh hour in March. Omar and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had slipped to less than eighty years, the figure would have escalated by at least £1,125.
In 2013 we were contacted by Ms Harriet Gray who, having acquired a purpose-built apartment in Tunstall in February 2012. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Tunstall with an extended lease were in the region of £300,000. The average amount of ground rent was £50 billed yearly. The lease expiry date was in 2101. Given that there were 76 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Dr M Pérez took over the lease of a one bedroom apartment in Tunstall in March 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Tunstall with an extended lease were valued around £257,800. The average amount of ground rent was £65 billed per annum. The lease lapsed on 23 April 2090. Taking into account 65 years left we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.