Twyford 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 Twyford tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Twyford you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Twyford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Luca, started to get near to the 80-year threshold with the lease on his first floor flat in Twyford. In buying his home two decades ago, the length of the lease was of no importance. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Luca extended the lease at the eleventh hour in July. Luca and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had dipped below 80 years, the premium would have gone up by a minimum £1,000.
In 2009 we were called by Mr and Mrs. V Clark who, having acquired a ground floor apartment in Twyford in September 1997. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Similar flats in Twyford with a long lease were in the region of £206,200. The average ground rent payable was £55 collected quarterly. The lease ended in 2081. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
Mrs Isabella Young purchased a first floor apartment in Twyford in April 1995. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in Twyford with a long lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2101. Having 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.