The only way is down when it comes to Tooting lease terms. Tooting properties that have a residual term less than than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Tooting,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 in-depth market knowledge and the close ties they enjoy with Tooting valuers.
After unsuccessful correspondence with the freeholder of her ground floor apartment in Tooting, Stephanie started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension was finalised in March 2015. The freeholder’s fees were restricted to slightly above 700 pounds.
In 2014 we were contacted by Mr Samuel King who, having completed a purpose-built flat in Tooting in July 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Tooting with an extended lease were worth £250,000. The average ground rent payable was £50 invoiced quarterly. The lease ran out on 26 April 2095. Considering the 69 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Tooting residence is 14 Nutwell Street in January 2014. The premium payable for the acquisition of a new lease of the subject premises was in the sum of £30,523 This case was in relation to 1 flat. The unexpired lease term was 62.94 years.