The re-sale value of a leasehold property in Twyford depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year cut off point. Current legislation enables Twyford qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Twyford with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Twyford can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Subsequent to protracted correspondence with the freeholder of her leasehold apartment in Twyford, Sophie commenced the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in April 2015. The freeholder’s fees were negotiated to slightly above 450 GBP.
In 2011 we were called by Mr and Mrs. T Cox who, having owned a studio apartment in Twyford in November 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Twyford with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 invoiced annually. The lease finished on 20 November 2087. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
In 2012 we were e-mailed by Dr K Smith who, having moved into a basement flat in Twyford in October 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Twyford with a long lease were valued around £174,200. The average ground rent payable was £55 invoiced per annum. The lease end date was on 24 April 2076. Having 51 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.