Totteridge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Totteridge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Totteridge you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Totteridge leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold properties in Totteridge with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Totteridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Totteridge valuers.
Reuben was the the leasehold proprietor of a conversion apartment in Totteridge on the market with a lease of a few days over 61 years unexpired. Reuben on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2013 we were contacted by Ms Natalie Bennett who, having completed a one bedroom flat in Totteridge in September 2004. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparable homes in Totteridge with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated on 6 April 2081. Considering the 55 years remaining we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
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.