When it comes to residential leasehold property in Totterdown, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Totterdown with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers 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 conveyancer we work with provide it.
After unsuccessful negotiations with the freeholder of her two bedroom flat in Totterdown, Sophie initiated the lease extension process as the eighty year threshold was rapidly advancing. The lease extension was concluded in January 2008. The landlord’s fees were kept to an absolute minimum.
Mr Ollie Norbert acquired a garden flat in Totterdown in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Totterdown with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2086. Taking into account 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.
In 2009 we were phoned by Mr and Mrs. K Bernard who, having was assigned a lease of a garden flat in Totterdown in April 1996. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar premises in Totterdown with a long lease were worth £260,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 27 May 2097. Taking into account 72 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.