It’s an underpublicised certainty that a Turvey residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Turvey property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Turvey will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Turvey with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Turvey can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Turvey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aarav, started to get near to the 80-year mark with the lease on his one bedroom flat in Turvey. Having bought his flat two decades ago, the unexpired term was of no relevance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Aarav was able to extend his lease just ahead of time last September. Aarav and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have become more costly by at least £1,000.
Last September we were e-mailed by Ms Georgia Petit , who took over the lease of a studio flat in Turvey in February 2001. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Turvey with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease finished on 9 April 2106. Considering the 80 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2014 we were phoned by Dr I Moore who, having acquired a one bedroom apartment in Turvey in November 2006. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical premises in Turvey with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed on 10 April 2086. Given that there were 60 years left we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.