Turvey 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 Turvey tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Turvey you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Turvey flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Turvey can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge procuring Turvey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold owner of a 2 bedroom flat in Turvey being sold with a lease of a little over sixty years outstanding. Sebastian informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Christmas we were contacted by Mr K Thompson , who purchased a ground floor apartment in Turvey in May 2012. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Turvey with an extended lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded in 2082. Taking into account 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.
Last Winter we were phoned by Dr U Jones , who owned a newly refurbished apartment in Turvey in January 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Turvey with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 billed monthly. The lease end date was in 2093. Taking into account 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.