Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Toddington. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Toddington have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give due deliberation before delaying your Toddington lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
Leasehold properties in Toddington with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Toddington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Kai, came dangerously close to the eighty-year mark with the lease on his purpose- built flat in Toddington. In buying his property twenty years ago, the lease term was of no relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Kai arranged for a lease extension just under the wire in August. Kai and the freeholder eventually agreed on sum of £5,000 . If the lease had dropped lower than eighty years, the price would have gone up by at least £1,150.
In 2009 we were phoned by Ms Gemma Hernández who, having was assigned a lease of a first floor flat in Toddington in April 1996. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Toddington with a long lease were worth £260,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2098. Taking into account 72 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Dr T Patel bought a studio flat in Toddington in May 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar homes in Toddington with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed monthly. The lease concluded in 2078. Considering the 52 years unexpired we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 plus expenses.