Tunstall leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Tunstall tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tunstall you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Tunstall flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society |
The lawyers that we work with procure Tunstall 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 conveyancer we work with provide it.
Elijah owned a studio apartment in Tunstall being sold with a lease of a few days over 72 years remaining. Elijah informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were contacted by Mrs I Kelly who, having moved into a garden apartment in Tunstall in October 2005. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical premises in Tunstall with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 billed quarterly. The lease expired in 2093. Having 67 years left we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including legals.
Dr D Davis bought a ground floor flat in Tunstall in September 2007. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Tunstall with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2082. Considering the 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.