When it comes to long leasehold property in Todmorden, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Todmorden with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold owner of a conversion flat in Todmorden on the market with a lease of a little over sixty years left. Owen informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Christmas we were approach by Mr and Mrs. N Kelly , who took over the lease of a studio apartment in Todmorden in July 2001. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar properties in Todmorden with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2088. Given that there were 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
Last Spring we were called by Mrs W Moreau , who bought a purpose-built flat in Todmorden in April 1995. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative flats in Todmorden with a long lease were worth £181,600. The mid-range ground rent payable was £55 invoiced annually. The lease concluded in 2077. Taking into account 52 years left we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.