The market value of a leasehold property in Tedburn St Mary is impacted by how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year cut off point. Leasehold Reform legislation entitles Tedburn St Mary qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Tedburn St Mary with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Tedburn St Mary leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luca, came seriously close to the eighty-year threshold with the lease on his garden flat in Tedburn St Mary. In buying his home 19 years ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Luca extended the lease at the eleventh hour last April. Luca and the landlord in the end agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have escalated by a minimum £1,050.
Last Winter we were called by Dr Harrison White , who completed a ground floor flat in Tedburn St Mary in June 1998. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative residencies in Tedburn St Mary with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected quarterly. The lease finished in 2098. Given that there were 72 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Ms Lydia Johnson moved into a ground floor flat in Tedburn St Mary in September 2002. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Tedburn St Mary with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 collected annually. The lease expiry date was on 19 July 2087. Taking into account 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of fees.