Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Twyford. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Twyford have the legal entitlement to extend the lease for a further ninety years in accordance with statute. You should give careful deliberation before putting off your Twyford lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Twyford with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Twyford can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Twyford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Lucas, started to get close to the 80-year mark with the lease on his first floor flat in Twyford. Having purchased his property two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he needed to take action soon on Extending the lease. Lucas arranged for a lease extension just in the nick of time in March. Lucas and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had descended lower than eighty years, the price would have gone up by at least £975.
Last Winter we were phoned by Mr Dexter James , who took over the lease of a garden flat in Twyford in May 2011. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical residencies in Twyford with a long lease were worth £223,400. The average ground rent payable was £60 collected yearly. The lease concluded on 6 January 2085. Having 59 years remaining we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.
In 2014 we were e-mailed by Mr Rory Mitchell who, having was assigned a lease of a one bedroom flat in Twyford in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Twyford with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 billed monthly. The lease termination date was in 2105. Considering the 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.