Unfortunately that a Tyldesley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Tyldesley property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Tyldesley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Tyldesley with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Tyldesley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tyldesley valuers.
Trailing unsuccessful discussions with the freeholder of her studio flat in Tyldesley, Ashleigh initiated the lease extension process as the eighty year mark was swiftly coming. The lease extension was finalised in May 2011. The landlord’s charges were kept to an absolute minimum.
Mr James Lambert took over the lease of a ground floor apartment in Tyldesley in January 2010. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar homes in Tyldesley with a long lease were in the region of £166,800. The average amount of ground rent was £50 billed monthly. The lease expired in 2076. Considering the 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.
In 2014 we were approached by Mr Tommy Michel who, having owned a ground floor flat in Tyldesley in July 1996. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Tyldesley with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2096. Having 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.