Chances are that where you own a flat in Todwick you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Todwick 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.
Following lengthy correspondence with the freeholder of her leasehold apartment in Todwick, Molly commenced the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in January 2008. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. T Rivera , who bought a ground floor apartment in Todwick in October 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Todwick with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 invoiced per annum. The lease ended on 2 July 2103. Having 77 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2012 we were approached by Ms O Alexander who, having completed a ground floor apartment in Todwick in November 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Todwick with a long lease were valued about £183,600. The average amount of ground rent was £65 collected yearly. The lease ran out in 2083. Taking into account 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.