For anyone whose Toddington home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works |
The conveyancers that we work with handle Toddington 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.
Kian owned a high value flat in Toddington being marketed with a lease of a little over 72 years left. Kian on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mrs Olivia Robinson was assigned a lease of a garden apartment in Toddington in June 1998. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Toddington with an extended lease were worth £176,200. The average amount of ground rent was £65 billed annually. The lease expiry date was in 2082. Considering the 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
Dr R Dupont took over the lease of a one bedroom flat in Toddington in January 2006. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Toddington with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 collected annually. The lease ran out in 2093. Considering the 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.