For anyone whose Todmorden home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Todmorden 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the landlord of her first floor flat in Todmorden, Sophia initiated the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in June 2009. The landlord’s fees were negotiated to a tad over four hundred GBP.
Dr Morgan Moore purchased a purpose-built flat in Todmorden in March 2001. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Todmorden with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 6 November 2099. Having 73 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were e-mailed by Mr Luke Murphy , who took over the lease of a first floor flat in Todmorden in March 2001. The question was if we could estimate the price could be for a ninety year lease extension. Comparative premises in Todmorden with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including professional charges.