Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Tooting. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Tooting have the legal entitlement to extend the lease for a further ninety years under statute. Do give due consideration before delaying your Tooting lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Tooting with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Tooting,the lease extension lawyers that we work with will always be willing 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.
Last Summer Ryan, came very close to the 80-year mark with the lease on his one bedroom apartment in Tooting. In buying his home two decades ago, the length of the lease was of little bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Ryan was able to extend his lease just in the nick of time last May. Ryan and the landlord ultimately settled on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by at least £1,150.
Last Christmas we were called by Dr Luca Nelson , who took over the lease of a one bedroom flat in Tooting in July 1998. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparative residencies in Tooting with a long lease were worth £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease concluded in 2083. Taking into account 57 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including professional charges.
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 related to 1 flat. The unexpired residue of the current lease was 62.94 years.