The nearer a residential lease in Tutbury nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Tutbury will qualify for this right; however a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Tutbury leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, started to get close to the eighty-year mark with the lease on his leasehold flat in Tutbury. In buying his flat 19 years previously, the unexpired term was of minimal importance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Jayden extended the lease at the eleventh hour in March. Jayden and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £900.
Last Christmas we were phoned by Mr and Mrs. M Wood , who moved into a one bedroom flat in Tutbury in June 2009. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Tutbury with an extended lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease terminated on 5 October 2095. Taking into account 69 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last Summer we were called by Mr and Mrs. N Scott , who owned a garden flat in Tutbury in March 2011. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Tutbury with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2106. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.