Unfortunately that a Todmorden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Todmorden property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Todmorden will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
Regardless of whether you are a tenant or a landlord in Todmorden,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Todmorden valuers.
During the course of the last few months Sebastian, started to get near to the 80-year threshold with the lease on his first floor apartment in Todmorden. In buying his home two decades ago, the unexpired term was of minimal bearing. by good luck, he became aware that he needed to take action soon on Extending the lease. Sebastian arranged for a lease extension at the eleventh hour last March. Sebastian and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had slid to less than 80 years, the figure would have escalated by at least £1,050.
Dr H Johnson took over the lease of a one bedroom apartment in Todmorden in June 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable flats in Todmorden with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected quarterly. The lease finished in 2100. Given that there were 74 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
In 2011 we were called by Dr L David who, having was assigned a lease of a basement apartment in Todmorden in October 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Todmorden with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 24 April 2089. Considering the 63 years left we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.