Tutbury leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Tutbury will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Tutbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the landlord of her garden apartment in Tutbury, Samantha started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in July 2008. The landlord’s fees were restricted to less than 600 GBP.
Mr and Mrs. S Gunderson bought a studio flat in Tutbury in February 2003. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable flats in Tutbury with a long lease were worth £256,600. The average ground rent payable was £60 billed monthly. The lease lapsed in 2078. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including professional charges.
Last Summer we were approach by Mr R Bell , who took over the lease of a studio flat in Tutbury in April 2001. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Tutbury with an extended lease were worth £218,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus fees.