There is no doubt about it a leasehold flat or house in Tyldesley is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be of little impact 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 main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Tyldesley will qualify for this right; however a conveyancer will be able to advise whether you are eligible for a lease extension. 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 properties in Tyldesley with more than one hundred years unexpired on the lease are often referred to as ‘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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Tyldesley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tyldesley valuers.
Jasper owned a conversion flat in Tyldesley on the market with a lease of just over sixty years unexpired. Jasper informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. V Bonnet completed a purpose-built apartment in Tyldesley in November 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Tyldesley with a long lease were worth £208,600. The average ground rent payable was £60 collected yearly. The lease expired on 5 June 2082. Given that there were 57 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.
Last Summer we were e-mailed by Ms Mollie Moreau , who bought a one bedroom apartment in Tyldesley in November 2000. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Tyldesley with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 26 May 2102. Taking into account 77 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.