The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Topsham may extend the lease for an additional 90 years under legislation. Do think carefully before delaying your Topsham lease extension. Postponing the costs today simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with undertake Topsham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Reuben was the the leasehold owner of a studio apartment in Topsham on the market with a lease of a few days over fifty eight years unexpired. Reuben informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured an acceptable deal informally and readily saleable.
Last Christmas we were approach by Mr and Mrs. J Bernard , who took over the lease of a studio flat in Topsham in May 1996. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Topsham with an extended lease were worth £295,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out on 5 November 2100. Taking into account 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. J Scott moved into a one bedroom apartment in Topsham in August 2007. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Topsham with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected per annum. The lease ended on 27 May 2089. Having 64 years left we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.