For those whose Topsham property is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Topsham with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Topsham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her first floor apartment in Topsham, Natasha started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work was concluded in July 2010. The landlord’s costs were kept to an absolute minimum.
Dr Teddy Harris acquired a ground floor flat in Topsham in June 1999. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Topsham with an extended lease were worth £181,600. The mid-range ground rent payable was £55 collected annually. The lease termination date was in 2077. Given that there were 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Dr B Norbert acquired a ground floor flat in Topsham in May 2000. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical flats in Topsham with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished on 11 November 2097. Having 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.