The value of Tooting leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
It is generally accepted 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 premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tooting can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tooting lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn James, came very close to the eighty-year threshold with the lease on his garden apartment in Tooting. Having purchased his flat 18 years ago, the length of the lease was of no importance. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. James arranged for a lease extension just ahead of time last August. James and the landlord eventually settled on an amount of £5,500 . If he not met the deadline, the sum would have increased by at least £950.
Last Christmas we were approach by Mr and Mrs. Y Howard , who acquired a one bedroom flat in Tooting in February 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Tooting with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2100. Having 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Tooting property 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 remaining number of years on the lease was 62.94 years.