When it comes to long leasehold premises in Tooting, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Tooting with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Tooting 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.
Isaac owned a high value apartment in Tooting on the market with a lease of a few days over sixty years unexpired. Isaac informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2009 we were contacted by Mr and Mrs. O Bernard who, having was assigned a lease of a basement flat in Tooting in September 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Tooting with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected annually. The lease end date was on 24 March 2098. Taking into account 72 years outstanding 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 case for a Tooting flat 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 affected 1 flat. The unexpired term was 62.94 years.