Chances are that if you own a flat in Tolworth you actually own a long leasehold interest over your property
Leasehold premises in Tolworth with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Tolworth,the lease extension lawyers 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 Tolworth valuers.
In the wake of 9 months of unsuccessful discussions with the freeholder of her studio apartment in Tolworth, Lily started the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was finalised in June 2006. The freeholder’s costs were restricted to about 700 GBP.
Ms Amelia Scott was assigned a lease of a newly refurbished apartment in Tolworth in March 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Tolworth with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish on 24 February 2097. Given that there were 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
An example of a Lease Extension matter before the tribunal for a Tolworth residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.