As the the remaining lease term of a Tedburn St Mary residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Tedburn St Mary will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Tedburn St Mary,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tedburn St Mary valuers.
Two years ago Owen, started to get close to the eighty-year mark with the lease on his ground floor flat in Tedburn St Mary. Having purchased his property twenty years ago, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Owen was able to extend his lease just under the wire in August. Owen and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £1,150.
Ms G Wood completed a one bedroom apartment in Tedburn St Mary in January 1997. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Tedburn St Mary with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended on 17 July 2104. Given that there were 79 years remaining we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus fees.
In 2011 we were called by Dr Hollie Edwards who, having purchased a one bedroom apartment in Tedburn St Mary in April 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Tedburn St Mary with a long lease were worth £270,000. The average ground rent payable was £65 billed quarterly. The lease expired in 2093. Considering the 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.