As the length of the unexpired term of a Totterdown residential lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Totterdown will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Totterdown,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 in-depth market knowledge and the close ties they enjoy with Totterdown valuers.
Two years ago Dexter, started to get near to the 80-year mark with the lease on his studio flat in Totterdown. Having purchased his flat two decades ago, the unexpired term was of minimal bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Dexter was able to extend his lease just under the wire last March. Dexter and the freeholder eventually agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £1,100.
Dr S Alexander took over the lease of a basement flat in Totterdown in January 1996. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable homes in Totterdown with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease expired in 2085. Given that there were 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including legals.
In 2013 we were e-mailed by Dr W Díaz who, having owned a studio flat in Totterdown in September 2001. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Totterdown with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2096. Considering the 70 years unexpired we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including professional charges.