On the balance of probabilities if you own a flat in Toddington you actually own a long leasehold interest over your property
Leasehold premises in Toddington with over one hundred years remaining 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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
During the course of the last few months Noah, came critically near to the 80-year threshold with the lease on his two bedroom apartment in Toddington. In buying his property two decades ago, the lease term was of little relevance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Noah was able to extend his lease just in the nick of time last July. Noah and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,000.
Last Spring we were phoned by Mr and Mrs. I Jackson , who acquired a one bedroom flat in Toddington in September 1999. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparative homes in Toddington with an extended lease were valued about £235,200. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2091. Given that there were 66 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2012 we were e-mailed by Dr J Lewis who, having completed a ground floor apartment in Toddington in May 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Toddington with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected yearly. The lease termination date was on 9 May 2102. Considering the 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.