Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Todwick. Inevitably, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Todwick have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Please give careful consideration before delaying your Todwick lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Todwick leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a high value apartment in Todwick being sold with a lease of a little over 61 years left. Oscar on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Christmas we were e-mailed by Dr O Wood , who owned a purpose-built flat in Todwick in May 2007. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar homes in Todwick with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded in 2092. Having 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.
In 2010 we were called by Mr and Mrs. R Nguyen who, having moved into a ground floor apartment in Todwick in August 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative homes in Todwick with a long lease were valued about £280,000. The average amount of ground rent was £55 billed annually. The lease finished in 2103. Considering the 78 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.