Twyford leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Twyford will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Twyford with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date 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 handle Twyford 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.
Michael was the the leasehold owner of a studio flat in Twyford on the market with a lease of just over sixty years outstanding. Michael on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2013 we were contacted by Mr and Mrs. J Thompson who, having moved into a first floor flat in Twyford in February 1997. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Twyford with an extended lease were worth £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease expiry date was on 22 January 2085. Taking into account 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus legals.
Last Spring we were phoned by Mr and Mrs. U Leroy , who took over the lease of a one bedroom flat in Twyford in May 2004. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Identical flats in Twyford with a long lease were valued around £171,800. The average amount of ground rent was £55 billed monthly. The lease ran out on 10 July 2074. Taking into account 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.