The re-sale value of a leasehold property in Twyford depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year mark. Leasehold Reform legislation enables Twyford qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Twyford with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure Twyford 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 lawyer we work with provide it.
Two years ago Harry, started to get near to the 80-year mark with the lease on his purpose- built apartment in Twyford. Having bought his home 19 years previously, the unexpired term was of minimal relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Harry extended the lease just in the nick of time in March. Harry and the landlord eventually settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £900.
Last Spring we were called by Mr and Mrs. G Rose , who took over the lease of a garden flat in Twyford in November 2007. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Twyford with a long lease were valued around £225,800. The average ground rent payable was £60 collected quarterly. The lease elapsed on 18 June 2086. Considering the 60 years outstanding we estimated the premium to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of professional charges.
Ms Hannah Nguyen took over the lease of a purpose-built flat in Twyford in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Twyford with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish in 2106. Having 80 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.