The market value of a leasehold property in Totteridge is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year cut off point. Statute entitles Totteridge qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Totteridge with more than one hundred years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Totteridge,the lease extension solicitors 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 Totteridge valuers.
Muhammad owned a high value flat in Totteridge on the market with a lease of fraction over fifty eight years outstanding. Muhammad on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and secured an acceptable deal informally and sell the property.
In 2014 we were phoned by Mr and Mrs. D Rivera who, having owned a basement flat in Totteridge in January 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar premises in Totteridge with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2090. Having 64 years outstanding we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus fees.
An example of a Lease Extension matter before the tribunal for a Totteridge property is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The unexpired term was 76 years.