Twyford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Twyford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Twyford you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Twyford flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Twyford with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Twyford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Twyford valuers.
Jude owned a high value apartment in Twyford being sold with a lease of just over 72 years unexpired. Jude on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were contacted by Dr L Parker , who was assigned a lease of a newly refurbished apartment in Twyford in February 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Twyford with 100 year plus lease were valued around £275,000. The average amount of ground rent was £65 collected yearly. The lease end date was in 2093. Taking into account 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Dr B Rose owned a basement flat in Twyford in May 2011. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Twyford with a long lease were valued about £208,600. The average ground rent payable was £60 invoiced yearly. The lease ran out in 2082. Given that there were 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.