When it comes to long leasehold premises in Todmorden, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Todmorden with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Todmorden with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you enhanced control over the value of your Todmorden leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a conversion apartment in Todmorden being marketed with a lease of fraction over 59 years remaining. Hugo informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. C Laurent who, having completed a one bedroom flat in Todmorden in April 1996. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable homes in Todmorden with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 26 February 2098. Taking into account 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Mrs E Lewis moved into a one bedroom flat in Todmorden in February 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Todmorden with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2087. Having 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.