Twyford residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Twyford with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Twyford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Twyford valuers.
Jake was the the leasehold proprietor of a conversion apartment in Twyford being marketed with a lease of just over 61 years left. Jake on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2010 we were called by Mr A Rose who, having completed a one bedroom apartment in Twyford in November 2000. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical properties in Twyford with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished on 5 March 2078. Considering the 52 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.
Last May we were approach by Dr Eli Hill , who owned a basement apartment in Twyford in May 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Twyford with an extended lease were worth £290,000. The average amount of ground rent was £45 billed yearly. The lease end date was in 2098. Having 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including fees.