For anyone whose Twyford flat is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Twyford can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Twyford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her first floor flat in Twyford, Rachel started the lease extension process as the eighty year threshold was rapidly coming. The legal work was concluded in June 2012. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Mr V Peterson who, having acquired a first floor apartment in Twyford in February 1999. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Twyford with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease expired on 3 September 2105. Given that there were 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. J Thompson owned a first floor flat in Twyford in April 2005. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative premises in Twyford with an extended lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2094. Taking into account 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.