Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Todmorden. Inevitably, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Todmorden have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before putting off your Todmorden lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Half a year ago Omar, came perilously near to the eighty-year mark with the lease on his basement apartment in Todmorden. Having bought his home two decades ago, the length of the lease was of no concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Omar was able to extend his lease at the eleventh hour last May. Omar and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,125.
In 2014 we were contacted by Dr Austin García who, having owned a recently refurbished apartment in Todmorden in August 2005. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar homes in Todmorden with an extended lease were valued about £191,400. The average ground rent payable was £55 invoiced per annum. The lease ran out on 3 October 2080. Given that there were 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of fees.
Last April we were contacted by Mrs Naomi Richardson , who completed a garden apartment in Todmorden in July 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar homes in Todmorden with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 billed annually. The lease concluded in 2100. Taking into account 74 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.