For those whose Todmorden home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Reuben was the the leasehold proprietor of a 2 bedroom flat in Todmorden being sold with a lease of a little over sixty years unexpired. Reuben on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.
In 2013 we were approached by Mr and Mrs. V Gunderson who, having acquired a ground floor apartment in Todmorden in April 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Todmorden with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated on 9 April 2104. Having 78 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Last Winter we were contacted by Mr and Mrs. U Howard , who completed a basement flat in Todmorden in September 1995. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar properties in Todmorden with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced per annum. The lease elapsed on 13 September 2093. Given that there were 67 years remaining we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including costs.