Tutbury leases on residential properties are gradually losing 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. The majority of owners of residential leasehold property in Tutbury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tutbury you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tutbury can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 Tutbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Seth, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Tutbury. In buying his flat two decades ago, the length of the lease was of no relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Seth arranged for a lease extension just under the wire in June. Seth and the freeholder eventually agreed on a premium of £6,000 . If the lease had gone lower than 80 years, the figure would have become more costly by at least £950.
Last year we were approach by Mr and Mrs. H Michel , who completed a studio apartment in Tutbury in October 2008. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Tutbury with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2099. Considering the 74 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Mr and Mrs. C Bertrand purchased a studio flat in Tutbury in July 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Tutbury with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 billed yearly. The lease termination date was in 2079. Considering the 54 years left we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including professional charges.