Unfortunately that a Twyford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Twyford property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Twyford will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with handle 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.
Jamie owned a conversion flat in Twyford being sold with a lease of fraction over sixty years unexpired. Jamie informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were contacted by Ms R Rodríguez who, having completed a one bedroom apartment in Twyford in April 2005. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Twyford with a long lease were in the region of £300,000. The average ground rent payable was £50 billed annually. The lease concluded in 2101. Taking into account 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last Christmas we were phoned by Mr and Mrs. B Adams , who purchased a recently refurbished flat in Twyford in October 2000. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical premises in Twyford with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 collected every twelve months. The lease expiry date was in 2090. Having 64 years left we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.