Todmorden leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Todmorden will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Todmorden with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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 |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Todmorden leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold proprietor of a conversion flat in Todmorden being sold with a lease of fraction over 59 years unexpired. Eliot informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were called by Mr Riley Alexander , who moved into a studio apartment in Todmorden in May 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Todmorden with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 8 July 2091. Having 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
In 2013 we were called by Ms Nicole Lefèvre who, having bought a ground floor flat in Todmorden in July 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Todmorden with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded on 6 August 2080. Taking into account 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of costs.