As the length of the unexpired term of a Twyford domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Twyford will qualify for this right; that being said a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Twyford can be a difficult process. We recommend you get 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 a wealth of experience procuring Twyford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Seth, started to get close to the 80-year mark with the lease on his two bedroom flat in Twyford. In buying his property twenty years previously, the length of the lease was of minimal relevance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Seth extended the lease just ahead of time last July. Seth and the freeholder via the management company ultimately agreed on a premium of £5,000 . If he had missed the deadline, the price would have escalated by at least £925.
In 2012 we were phoned by Mr and Mrs. G Hill who, having purchased a ground floor flat in Twyford in July 2007. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar premises in Twyford with a long lease were valued around £191,400. The average amount of ground rent was £55 billed monthly. The lease concluded in 2079. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.
Dr Sam Bailey acquired a garden flat in Twyford in May 2003. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Twyford with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished on 14 September 2099. Given that there were 74 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.