It’s an underpublicised truth that a Tunstall residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Tunstall property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Tunstall will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Tunstall with over one hundred years left on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Tunstall leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her purpose-built apartment in Tunstall, Phoebe commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction completed in April 2010. The landlord’s costs were negotiated to below four hundred GBP.
Mr and Mrs. A Campbell purchased a ground floor flat in Tunstall in September 2006. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Tunstall with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2100. Given that there were 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Christmas we were contacted by Dr S Bailey , who took over the lease of a one bedroom flat in Tunstall in August 2011. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Tunstall with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 billed annually. The lease elapsed in 2089. Having 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.