Todmorden Lease Extension - Free Consultation

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Main reasons to commence your Todmorden lease extension


Why you should start your Todmorden lease extension today:

A Todmorden lease depreciates with the years remaining on the lease.

The closer a domestic lease in Todmorden nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Todmorden will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

Todmorden property with a lease extension is almost the same value as a freehold

Leasehold premises in Todmorden with more than one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not lend with a short lease

Lending institutions are less likely to grant a loan offer on a residential flat in Todmorden with a short lease. Some lenders simply refuse to lend on leases with below 75 years left.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start 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.

Get in touch with one of our Todmorden lease extension solicitors or enfranchisement solicitors

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 relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Todmorden Lease Extension Example Cases:

Hugo, Todmorden, West Yorkshire,

Hugo was the the leasehold proprietor of a 2 bedroom apartment in Todmorden on the market with a lease of a little over sixty years unexpired. Hugo on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Todmorden case:

Mr W Cooper completed a ground floor apartment in Todmorden in February 2012. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative flats in Todmorden with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease end date was on 21 August 2098. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.

Todmorden case:

In 2011 we were approached by Ms Millie Ward who, having acquired a one bedroom flat in Todmorden in March 2002. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative residencies in Todmorden with 100 year plus lease were worth £243,000. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2087. Having 63 years left we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.