The re-sale value of a leasehold property in Twyford is impacted by how long the lease has remaining. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be addressed well before the eighty year threshold. Leasehold Reform legislation enables Twyford qualifying lessees to an additional term of 90 years on top of the existing term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Twyford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Twyford valuers.
After lengthy correspondence with the freeholder of her garden apartment in Twyford, Chantelle initiated the lease extension process as the eighty year mark was fast advancing. The lease extension completed in November 2007. The freeholder’s charges were kept to an absolute minimum.
Dr O Simon moved into a one bedroom apartment in Twyford in June 2004. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative homes in Twyford with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2098. Given that there were 72 years outstanding we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.
Last April we were called by Mr M Thomas , who took over the lease of a ground floor apartment in Twyford in April 2001. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical properties in Twyford with an extended lease were valued about £233,200. The average ground rent payable was £60 billed yearly. The lease finished in 2087. Having 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of costs.