Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Taplow. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Taplow have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give due deliberation before delaying your Taplow lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Taplow with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Taplow leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a studio flat in Taplow on the market with a lease of just over fifty eight years unexpired. Ibrahim informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last May we were approach by Mr and Mrs. F André , who acquired a one bedroom flat in Taplow in January 2010. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative homes in Taplow with an extended lease were valued around £285,000. The average ground rent payable was £45 billed quarterly. The lease expiry date was on 26 March 2097. Given that there were 72 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Last Summer we were e-mailed by Dr Adam Rogers , who was assigned a lease of a one bedroom apartment in Taplow in March 2000. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative homes in Taplow with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed quarterly. The lease concluded in 2086. Taking into account 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including costs.