Turvey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Turvey tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Turvey you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Turvey 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 conveyancer we work with provide it.
Omar was the the leasehold proprietor of a 2 bedroom apartment in Turvey on the market with a lease of a few days over 72 years remaining. Omar on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr and Mrs. I Davies who, having purchased a basement flat in Turvey in February 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Turvey with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish on 4 July 2096. Considering the 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
In 2009 we were called by Mr Dylan Moreau who, having took over the lease of a basement apartment in Turvey in October 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Turvey with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 24 March 2076. Taking into account 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of legals.