The re-sale value of a leasehold property in Taplow depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be concluded prior to the eighty year cut off point. Leasehold Reform legislation entitles Taplow qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Taplow with over 100 years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | 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 |
The conveyancers that we work with procure 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.
William was the the leasehold owner of a high value apartment in Taplow on the market with a lease of just over 72 years left. William on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last year we were called by Dr Caleb Petit , who purchased a garden apartment in Taplow in November 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Taplow with an extended lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease came to a finish on 7 July 2104. Considering the 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2014 we were called by Mr and Mrs. J Khan who, having moved into a recently refurbished flat in Taplow in January 2004. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable residencies in Taplow with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced annually. The lease came to a finish on 14 October 2093. Considering the 68 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.