On the balance of probabilities where you own a flat in Topsham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Topsham 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her ground floor apartment in Topsham, Emma started the lease extension process as the eighty year mark was swiftly nearing. The lease extension was finalised in February 2014. The landlord’s costs were negotiated to about 650 GBP.
Dr Hunter Edwards took over the lease of a ground floor flat in Topsham in May 2008. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical residencies in Topsham with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed quarterly. The lease lapsed in 2088. Taking into account 64 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.
Mr W Ali took over the lease of a studio apartment in Topsham in February 1995. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Topsham with an extended lease were valued around £184,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 24 September 2077. Taking into account 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.