Tooting leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Tooting residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tooting you would be well advised to check if your lease has between seventy and 90 years remaining. There are good reasons why a Tooting flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tooting can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Tooting lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aiden, came precariously near to the 80-year mark with the lease on his ground floor apartment in Tooting. Having purchased his property two decades ago, the unexpired term was of no relevance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Aiden extended the lease at the eleventh hour in July. Aiden and the freeholder in the end agreed on the final figure of £5,000 . If the lease had dropped to less than eighty years, the price would have increased by a minimum £1,150.
Mr and Mrs. L Cooper purchased a purpose-built flat in Tooting in October 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Tooting with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £55 collected monthly. The lease termination date was in 2105. Taking into account 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
An example of a Lease Extension decision for a Tooting property 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 62.94 years.