Towcester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Towcester tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Towcester you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Towcester leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Towcester can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Towcester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jamie, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Towcester. In buying his property 18 years ago, the unexpired term was of no interest. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Jamie was able to extend his lease at the eleventh hour in May. Jamie and the landlord subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £900.
In 2012 we were phoned by Mr and Mrs. T Martin who, having was assigned a lease of a newly refurbished apartment in Towcester in March 2005. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical residencies in Towcester with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 25 January 2076. Given that there were 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Last Winter we were e-mailed by Mr Reuben Martínez , who moved into a newly refurbished apartment in Towcester in September 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Towcester with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded on 17 March 2096. Considering the 71 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.