Totteridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Totteridge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Totteridge you should check if your lease has between 70 and ninety years left. There are good reasons why a Totteridge flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Totteridge with more than 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Totteridge can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Totteridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Harry, came dangerously close to the 80-year threshold with the lease on his leasehold apartment in Totteridge. In buying his flat twenty years ago, the unexpired term was of no interest. by good luck, he became aware that he needed to take steps soon on a lease extension. Harry extended the lease at the eleventh hour last May. Harry and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had descended lower than 80 years, the amount would have become more exhorbitant by at least £1,150.
In 2012 we were contacted by Mr and Mrs. P Morel who, having completed a studio flat in Totteridge in January 2008. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Comparative residencies in Totteridge with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 16 July 2078. Considering the 53 years outstanding we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
An example of a Lease Extension case for a Totteridge flat 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 related to 1 flat. The unexpired term as at the valuation date was 76 years.