The value of Twyford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than 80 years
Leasehold residencies in Twyford with in excess of one hundred years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Twyford can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Half a year ago Andrew, started to get near to the 80-year mark with the lease on his two bedroom flat in Twyford. In buying his home 19 years ago, the length of the lease was of no importance. Thankfully, he realised he needed to take steps soon on a lease extension. Andrew was able to extend his lease at the eleventh hour last January. Andrew and the freeholder via the management company subsequently settled on an amount of £5,000 . If the lease had slid lower than 80 years, the premium would have escalated by a minimum £975.
Mr A Ramírez was assigned a lease of a purpose-built apartment in Twyford in May 1998. The question was if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Twyford with a long lease were worth £265,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2091. Having 66 years left we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
Mr and Mrs. M Lambert bought a garden apartment in Twyford in November 2001. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable residencies in Twyford with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease end date was on 9 March 2080. Given that there were 55 years left we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of fees.