Tottenham leases on residential properties are gradually losing 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. Most owners of residential leasehold property in Tottenham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tottenham you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Tottenham with in excess of 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Tottenham,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 Tottenham valuers.
Following lengthy negotiations with the freeholder of her one bedroom apartment in Tottenham, Jodie initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was concluded in July 2006. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Dr William Clark , who acquired a recently refurbished flat in Tottenham in June 2005. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable residencies in Tottenham with a long lease were in the region of £242,600. The average ground rent payable was £45 collected per annum. The lease ended on 3 July 2091. Considering the 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus expenses.
An example of a Freehold Enfranchisement case for a Tottenham flat is 30 Strode Road in June 2013. Following a vesting order by Edmonton County Court on 20th February 2013 the Tribunal arrived at a valuation for enfranchisement of £10,256 for the premises (£4,074 for the Ground Floor Flat and £6182 for the First Floor Flat) and £100 for the appurtenant land. This case was in relation to 2 flats. The unexpired term was 83.33 and 77.3.