The re-sale value of a leasehold property in Taplow is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed well before the eighty year threshold. Current legislation entitles Taplow qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Taplow with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Taplow can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Taplow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold proprietor of a high value flat in Taplow on the market with a lease of a little over 61 years remaining. Finn informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. N Johnson who, having purchased a one bedroom apartment in Taplow in April 2007. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative premises in Taplow with a long lease were in the region of £225,800. The average ground rent payable was £60 billed per annum. The lease terminated in 2085. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including professional charges.
Last month we were contacted by Dr T Norbert , who completed a one bedroom flat in Taplow in October 2002. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Taplow with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was on 13 November 2105. Considering the 80 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.