For those whose Toddington flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Toddington with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Toddington can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience dealing with Toddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Sam, started to get near to the 80-year threshold with the lease on his studio flat in Toddington. Having purchased his flat two decades ago, the unexpired term was of minimal relevance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Sam was able to extend his lease at the eleventh hour in January. Sam and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had dipped lower than 80 years, the amount would have increased by at least £1,125.
Mr and Mrs. P Cooper was assigned a lease of a recently refurbished apartment in Toddington in October 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Toddington with an extended lease were in the region of £173,800. The average amount of ground rent was £60 billed yearly. The lease concluded on 18 November 2079. Taking into account 55 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.
In 2010 we were e-mailed by Mr and Mrs. F Carter who, having was assigned a lease of a one bedroom flat in Toddington in April 2005. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Toddington with a long lease were worth £235,200. The average ground rent payable was £45 invoiced annually. The lease expired on 23 April 2090. Given that there were 66 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.