It’s a harsh certainty that a Tedburn St Mary residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Tedburn St Mary property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Tedburn St Mary will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Tedburn St Mary 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 conveyancing solicitor we work with provide it.
In recent months Ali, came precariously near to the 80-year threshold with the lease on his two bedroom flat in Tedburn St Mary. In buying his flat twenty years ago, the lease term was of little importance. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Ali was able to extend his lease at the eleventh hour in June. Ali and the landlord who owned the flat above in the end settled on sum of £5,500 . If the lease had fallen below eighty years, the amount would have increased by at least £875.
Dr Seth Roberts bought a one bedroom flat in Tedburn St Mary in March 2008. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Tedburn St Mary with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 10 November 2083. Having 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
In 2013 we were contacted by Mr and Mrs. L García who, having purchased a ground floor apartment in Tedburn St Mary in November 2005. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Tedburn St Mary with a long lease were worth £200,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2103. Given that there were 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.