Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Totterdown. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Totterdown have the right to extend the lease for a further ninety years in accordance with statute. Please give due consideration before delaying your Totterdown lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Totterdown 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 conveyancing solicitor we work with provide it.
Two years ago Jacob, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Totterdown. Having purchased his property 19 years ago, the lease term was of no bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Jacob was able to extend his lease just under the wire last July. Jacob and the landlord eventually agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the sum would have gone up by a minimum £1,150.
Last Summer we were e-mailed by Mr and Mrs. J Torres , who acquired a garden apartment in Totterdown in April 1998. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Totterdown with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2098. Taking into account 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Autumn we were phoned by Mr Hunter Bernard , who moved into a garden flat in Totterdown in June 2003. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Totterdown with a long lease were in the region of £261,600. The average amount of ground rent was £60 collected per annum. The lease expired in 2078. Having 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of expenses.