When it comes to domestic leasehold premises in Tolworth, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Tolworth with a lease approaching 81 years left should seriously think of extending it sooner than later. Once the lease term has under eighty years remaining, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Tolworth,the lease extension lawyers 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 Tolworth valuers.
Two years ago Riley, started to get close to the 80-year mark with the lease on his leasehold flat in Tolworth. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Riley was able to extend his lease at the eleventh hour in June. Riley and the freeholder via the management company ultimately agreed on the final figure of £6,000 . If the lease had slid to less than 80 years, the premium would have increased by a minimum £1,050.
In 2009 we were phoned by Mr T Brooks who, having owned a one bedroom flat in Tolworth in January 1997. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Tolworth with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 billed monthly. The lease ran out on 20 January 2081. Taking into account 56 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Tolworth premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.