With a domestic leasehold premises in Todmorden, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Todmorden with a lease nearing 81 years left should seriously consider extending it as soon as possible. When a lease has below 80 years left, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Todmorden with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Todmorden leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold proprietor of a high value flat in Todmorden on the market with a lease of fraction over 59 years left. Mason on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2009 we were called by Dr Courtney Sharif who, having purchased a newly refurbished apartment in Todmorden in April 1997. We are asked if we could estimate the price could be for a ninety year lease extension. Similar residencies in Todmorden with a long lease were valued about £223,400. The mid-range amount of ground rent was £60 billed quarterly. The lease ended in 2084. Considering the 59 years outstanding we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.
Mr and Mrs. R David completed a ground floor flat in Todmorden in June 2008. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Todmorden with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended in 2104. Considering the 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.