There is no doubt about it a leasehold flat or house in Tutbury is a wasting asset as a result of the shortening lease. Where the lease has, over 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Tutbury will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Tutbury with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Godiva Mortgages | 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with undertake Tutbury 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.
Two years ago Jake, started to get close to the eighty-year mark with the lease on his first floor apartment in Tutbury. Having bought his home two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Jake arranged for a lease extension just ahead of time last June. Jake and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had fallen to less than eighty years, the amount would have increased by at least £875.
Dr Kai Gunderson took over the lease of a ground floor apartment in Tutbury in November 1996. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Tutbury with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 13 April 2088. Having 62 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
Mrs G Clark purchased a one bedroom flat in Tutbury in September 2007. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Tutbury with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 collected monthly. The lease terminated in 2099. Taking into account 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.