Topsham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Topsham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Topsham you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Topsham leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Topsham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Topsham valuers.
After unsuccessful correspondence with the freeholder of her first floor apartment in Topsham, Alexandra commenced the lease extension process as the 80 year mark was swiftly advancing. The lease extension completed in January 2015. The freeholder’s charges were restricted to slightly above 550 pounds.
In 2011 we were phoned by Dr Liam Ricardo who, having bought a first floor flat in Topsham in September 2006. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative residencies in Topsham with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out in 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Last Christmas we were called by Ms Victoria Fournier , who was assigned a lease of a ground floor flat in Topsham in October 2004. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Topsham with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 billed yearly. The lease end date was on 19 June 2089. Taking into account 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including professional charges.