Tedburn St Mary leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Tedburn St Mary enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tedburn St Mary you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Tedburn St Mary flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Tedburn St Mary leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Caleb, started to get near to the 80-year mark with the lease on his two bedroom apartment in Tedburn St Mary. Having bought his property 18 years ago, the unexpired term was of minimal bearing. Fortunately, he recognised he needed to take action soon on Extending the lease. Caleb was able to extend his lease just ahead of time last June. Caleb and the freeholder via the management company eventually agreed on an amount of £5,000 . If the lease had dropped below 80 years, the premium would have become more exhorbitant by at least £1,025.
Last year we were contacted by Mr and Mrs. R Hall , who moved into a newly refurbished apartment in Tedburn St Mary in May 2007. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical flats in Tedburn St Mary with an extended lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2088. Having 62 years remaining we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
Last September we were phoned by Dr J Cooper , who purchased a ground floor flat in Tedburn St Mary in June 1999. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar properties in Tedburn St Mary with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2077. Taking into account 51 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.