Unfortunately that a Totterdown residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Totterdown property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Totterdown will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Totterdown with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Totterdown,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Totterdown valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her garden apartment in Totterdown, Robyn started the lease extension process as the 80 year deadline was quickly approaching. The legal work was finalised in November 2009. The freeholder’s fees were kept to an absolute minimum.
Ms Lily Watson bought a ground floor apartment in Totterdown in February 2005. The question was if we could approximate the price could be for a 90 year lease extension. Similar homes in Totterdown with a long lease were worth £208,200. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish in 2087. Having 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
In 2010 we were phoned by Mr Archie Stewart who, having was assigned a lease of a purpose-built apartment in Totterdown in July 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical properties in Totterdown with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded on 17 October 2098. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.