Totteridge leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Totteridge will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Lease extensions in Totteridge can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Two years ago Alfie, came perilously near to the eighty-year threshold with the lease on his garden flat in Totteridge. Having purchased his property two decades ago, the length of the lease was of little concern. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Alfie arranged for a lease extension just in the nick of time last July. Alfie and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had slipped to less than eighty years, the amount would have escalated by at least £850.
Last Christmas we were called by Mrs K Bell , who owned a basement apartment in Totteridge in August 2004. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable premises in Totteridge with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed annually. The lease terminated on 1 September 2098. Given that there were 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
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 was in relation to 1 flat. The unexpired residue of the current lease was 76 years.