On the balance of probabilities if you own a flat in Todmorden you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Retaining our service will provide you better control over the value of your Todmorden leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her purpose-built flat in Todmorden, Molly initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was finalised in October 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. O Girard bought a one bedroom apartment in Todmorden in September 1998. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Todmorden with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 billed every twelve months. The lease elapsed on 10 June 2077. Given that there were 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.
In 2009 we were called by Mr and Mrs. K Carter who, having owned a basement apartment in Todmorden in May 2004. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Todmorden with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed in 2097. Having 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.