When it comes to domestic leasehold property in Taplow, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Taplow with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years left, under the current Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 conveyancers that we work with undertake Taplow 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 conveyancer we work with provide it.
In recent months Nathaniel, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Taplow. In buying his home two decades ago, the length of the lease was of minimal relevance. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Nathaniel was able to extend his lease just under the wire in May. Nathaniel and the freeholder ultimately agreed on a premium of £5,500 . If the lease had dipped below 80 years, the premium would have increased by at least £1,000.
Mr and Mrs. S Hernández owned a one bedroom apartment in Taplow in March 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Taplow with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 15 November 2104. Having 80 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. W Patel acquired a basement flat in Taplow in April 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Taplow with an extended lease were worth £275,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out on 26 July 2093. Taking into account 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.