Twyford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Twyford tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Twyford you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Twyford leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 | 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. |
Using our service gives you enhanced control over the value of your Twyford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold owner of a conversion apartment in Twyford on the market with a lease of just over sixty years remaining. Reuben informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Mrs U Rodríguez moved into a one bedroom flat in Twyford in January 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar homes in Twyford with a long lease were worth £208,600. The average ground rent payable was £60 collected every twelve months. The lease finished on 7 January 2083. Taking into account 57 years unexpired we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.
Dr T Johnson completed a one bedroom flat in Twyford in July 2004. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical properties in Twyford with an extended lease were valued around £200,000. The average ground rent payable was £50 billed monthly. The lease elapsed on 17 August 2103. Having 77 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.