Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Todwick. Inevitably, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Todwick have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful attention before delaying your Todwick lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
Leasehold premises in Todwick with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Todwick,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Todwick valuers.
Following unsuccessful correspondence with the landlord of her leasehold apartment in Todwick, Catherine started the lease extension process as the 80 year deadline was quickly coming. The legal work was concluded in October 2013. The landlord’s charges were kept to an absolute minimum.
Dr Milo Torres owned a first floor apartment in Todwick in September 2000. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Todwick with a long lease were worth £254,200. The average ground rent payable was £60 invoiced annually. The lease lapsed in 2076. Considering the 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.
In 2013 we were called by Mrs U Evans who, having purchased a garden apartment in Todwick in January 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar premises in Todwick with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease finished in 2087. Taking into account 62 years left we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.