With a domestic leasehold property in Topsham, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Topsham with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has fewer than 80 years remaining, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancing solicitors that we work with handle Topsham 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.
Following protracted correspondence with the freeholder of her purpose-built flat in Topsham, Jade started the lease extension process as the eighty year mark was swiftly approaching. The transaction completed in March 2015. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. L Adams was assigned a lease of a newly refurbished apartment in Topsham in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Topsham with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 19 June 2078. Given that there were 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
Last Summer we were contacted by Mrs Alicia Wright , who was assigned a lease of a basement flat in Topsham in March 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Topsham with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced every twelve months. The lease ended on 23 August 2098. Considering the 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.