It’s an underpublicised truth that a Taplow residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Taplow property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Taplow will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Taplow 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Taplow 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 lawyer we work with provide it.
Half a year ago Charlie, came critically near to the eighty-year threshold with the lease on his ground floor flat in Taplow. In buying his home two decades ago, the length of the lease was of no relevance. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Charlie extended the lease at the eleventh hour in January. Charlie and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had dipped to less than 80 years, the price would have become more costly by at least £850.
In 2011 we were called by Mr I Allen who, having purchased a purpose-built flat in Taplow in March 2009. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Taplow with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed in 2078. Considering the 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
In 2009 we were called by Ms Isobel Bell who, having took over the lease of a one bedroom apartment in Taplow in September 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable properties in Taplow with a long lease were in the region of £290,000. The average ground rent payable was £45 collected quarterly. The lease concluded on 22 July 2098. Considering the 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.