The closer a residential lease in Twyford gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Twyford will qualify for this right; however a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Twyford with over one hundred years unexpired on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Twyford 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her leasehold apartment in Twyford, Isobel started the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension completed in November 2006. The landlord’s charges were kept to an absolute minimum.
In 2014 we were phoned by Mr Ollie Adams who, having took over the lease of a first floor flat in Twyford in April 2004. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Twyford with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease terminated in 2093. Given that there were 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of fees.
In 2010 we were contacted by Mr and Mrs. C Hernández who, having acquired a ground floor apartment in Twyford in January 2007. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Twyford with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 19 August 2082. Having 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus fees.