Topsham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Topsham will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Topsham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Topsham valuers.
In recent months Alexander, came seriously close to the eighty-year threshold with the lease on his studio apartment in Topsham. Having bought his home two decades ago, the lease term was of little importance. by good luck, he became aware that he needed to take action soon on a lease extension. Alexander extended the lease just under the wire last August. Alexander and the landlord eventually agreed on an amount of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,125.
Mrs Jodie Collins acquired a one bedroom flat in Topsham in July 1998. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Topsham with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease expired on 17 May 2096. Given that there were 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Ms L Moore completed a first floor apartment in Topsham in March 1998. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Topsham with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 collected annually. The lease expired on 2 September 2085. Taking into account 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of legals.