The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Topsham may extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Topsham lease extension. Postponing that expense now simply increases the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 |
The lawyers that we work with undertake Topsham 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 conveyancing solicitor we work with provide it.
Following lengthy correspondence with the freeholder of her one bedroom flat in Topsham, Amy initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The lease extension was concluded in October 2008. The landlord’s charges were negotiated to a tad over 550 pounds.
In 2011 we were phoned by Mr and Mrs. L Garcia who, having took over the lease of a basement apartment in Topsham in November 2006. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Topsham with 100 year plus lease were valued around £206,200. The average ground rent payable was £55 collected monthly. The lease elapsed in 2081. Having 56 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Mr B James acquired a studio flat in Topsham in August 2005. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical homes in Topsham with a long lease were worth £300,000. The average ground rent payable was £50 billed monthly. The lease terminated on 27 May 2101. Given that there were 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.