Tooting leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Tooting tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Tooting you really ought to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Tooting flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Tooting lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy negotiations with the freeholder of her studio flat in Tooting, Alexandra initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work completed in February 2014. The landlord’s charges were negotiated to under 500 pounds.
Last Summer we were called by Ms Y Cooper , who owned a one bedroom flat in Tooting in April 1995. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical residencies in Tooting with an extended lease were worth £176,200. The average amount of ground rent was £65 billed yearly. The lease expired in 2080. Taking into account 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.
An example of a Lease Extension matter before the tribunal for a Tooting premises is 14 Nutwell Street in January 2014. The premium payable for the acquisition of a new lease of the subject premises was in the sum of £30,523 This case affected 1 flat. The number of years remaining on the existing lease(s) was 62.94 years.