Towcester leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Towcester residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Towcester you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| Chelsea 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. |
| 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. |
Retaining our service will provide you better control over the value of your Towcester leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aaron was the the leasehold proprietor of a studio apartment in Towcester being marketed with a lease of fraction over sixty years unexpired. Aaron on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mrs D Rivera moved into a one bedroom apartment in Towcester in August 2000. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical flats in Towcester with 100 year plus lease were valued around £206,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out in 2082. Considering the 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.
Last September we were e-mailed by Mrs G Khan , who acquired a first floor flat in Towcester in November 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Towcester with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 6 November 2102. Given that there were 76 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.