The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Tedburn St Mary may extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Tedburn St Mary lease extension. Postponing that expense today simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Tedburn St Mary with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Tedburn St Mary,the lease extension solicitors 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 Tedburn St Mary valuers.
Last year Elijah, came perilously near to the eighty-year threshold with the lease on his two bedroom flat in Tedburn St Mary. In buying his flat two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Elijah was able to extend his lease just under the wire last March. Elijah 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 figure would have gone up by a minimum £1,125.
In 2014 we were approached by Mrs Y Reed who, having acquired a garden apartment in Tedburn St Mary in June 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Tedburn St Mary with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2099. Considering the 75 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2009 we were called by Mr and Mrs. K Allen who, having bought a studio apartment in Tedburn St Mary in October 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Tedburn St Mary with an extended lease were valued around £252,800. The mid-range amount of ground rent was £65 billed annually. The lease ran out in 2089. Having 65 years as a residual term we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including fees.