The market value of a leasehold property in Topsham depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed well before the 80 year cut off point. Statute entitles Topsham qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Topsham with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Topsham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Topsham valuers.
Trailing unsuccessful correspondence with the landlord of her ground floor flat in Topsham, Imogen started the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was concluded in June 2012. The landlord’s charges were restricted to under 500 GBP.
Mr J Torres completed a ground floor apartment in Topsham in May 1998. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Topsham with a long lease were worth £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease finished on 13 March 2084. Given that there were 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Autumn we were contacted by Mr and Mrs. F Brown , who took over the lease of a studio flat in Topsham in August 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Topsham with an extended lease were valued about £200,000. The average ground rent payable was £50 invoiced annually. The lease expired on 7 June 2104. Considering the 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.