The market value of Toddington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Toddington with more than one hundred years left 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| 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. |
| 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. |
Retaining our service gives you better control over the value of your Toddington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jasper, came critically near to the eighty-year threshold with the lease on his two bedroom flat in Toddington. Having purchased his flat twenty years previously, the lease term was of minimal interest. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Jasper was able to extend his lease just in the nick of time in January. Jasper and the landlord eventually agreed on the final figure of £5,500 . If the lease had gone to less than 80 years, the price would have gone up by at least £925.
In 2013 we were contacted by Dr Kian Nguyen who, having acquired a garden apartment in Toddington in January 1997. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Toddington with an extended lease were valued about £245,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed on 21 May 2094. Taking into account 68 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last Spring we were called by Dr A François , who completed a garden apartment in Toddington in February 2004. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative residencies in Toddington with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed yearly. The lease ran out in 2105. Having 79 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.