Todmorden residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Todmorden with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Todmorden,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Todmorden valuers.
Trailing unsuccessful discussions with the landlord of her basement flat in Todmorden, Jessica started the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was finalised in April 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. A Nelson completed a one bedroom flat in Todmorden in November 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Todmorden with a long lease were worth £225,800. The average ground rent payable was £60 collected monthly. The lease concluded in 2085. Taking into account 60 years unexpired we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.
Dr Isaac Ali completed a basement flat in Todmorden in February 1997. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable properties in Todmorden with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2105. Given that there were 80 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.