The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Todwick have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please think carefully before delaying your Todwick lease extension. Shelving that expense today simply escalates the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Todwick with more than one hundred years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Todwick,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Todwick valuers.
Oliver was the the leasehold owner of a conversion apartment in Todwick being sold with a lease of a little over 61 years left. Oliver informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured satisfactory deal informally and sell the flat.
Last Winter we were contacted by Dr H Baker , who acquired a ground floor flat in Todwick in September 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Todwick with a long lease were in the region of £227,800. The average amount of ground rent was £45 invoiced per annum. The lease finished on 25 September 2091. Given that there were 65 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2010 we were e-mailed by Mrs Abbie Miller who, having moved into a garden flat in Todwick in May 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Todwick with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was in 2102. Having 76 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.