With a domestic leasehold premises in Topsham, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Topsham with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Topsham with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service gives you increased control over the value of your Topsham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Topsham, Rachel initiated the lease extension process as the 80 year mark was fast advancing. The legal work was finalised in September 2009. The landlord’s fees were negotiated to approximately 500 GBP.
Dr Y Moore was assigned a lease of a one bedroom flat in Topsham in January 2012. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable properties in Topsham with a long lease were worth £198,800. The average ground rent payable was £55 invoiced annually. The lease finished in 2081. Taking into account 55 years left we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.
In 2014 we were contacted by Dr C Harris who, having owned a purpose-built apartment in Topsham in April 2001. The question was if we could approximate the price could be for a 90 year lease extension. Similar homes in Topsham with an extended lease were valued around £295,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2101. Having 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.