Tutbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Tutbury enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tutbury you must check if your lease has between seventy and 90 years remaining. There are good reasons why a Tutbury flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Tutbury with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get guidance from a conveyancer 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 a wealth of experience dealing with 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 critically close to the 80-year mark with the lease on his basement apartment in Tutbury. In buying his property 18 years previously, the unexpired term was of little importance. by good luck, he recognised he needed to take action soon on a lease extension. Seth was able to extend his lease just in the nick of time in January. Seth and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had dipped below 80 years, the sum would have increased by a minimum £1,000.
Last Christmas we were contacted by Dr Oscar Collins , who completed a purpose-built flat in Tutbury in January 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in Tutbury with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease finished on 2 August 2076. Considering the 50 years remaining we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.
In 2012 we were approached by Dr J Collins who, having bought a one bedroom apartment in Tutbury in August 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Tutbury with an extended lease were valued around £208,200. The average ground rent payable was £65 billed every twelve months. The lease elapsed in 2087. Considering the 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.