The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Topsham may extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Topsham lease extension. Putting off the costs today simply escalates the premium you will eventually be required to pay for a lease extension.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Topsham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold proprietor of a 2 bedroom apartment in Topsham on the market with a lease of fraction over 59 years left. John informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. Y Bernard , who completed a ground floor apartment in Topsham in January 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Topsham with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed yearly. The lease lapsed in 2092. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
Mr and Mrs. K Phillips moved into a ground floor flat in Topsham in August 2011. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Topsham with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 billed monthly. The lease ended in 2081. Taking into account 55 years unexpired we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.