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Main reasons to commence your Tooting lease extension

Main reasons to commence your Tooting lease extension today:

A Tooting lease depreciates with the years remaining on the lease.

With a residential leasehold premises in Tooting, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Tooting with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than eighty years left, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not loan monies with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Chelsea Building Society 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.
Leeds Building Society 85 years remaining from the start of the mortgage.
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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Tooting lease extensions?

Engaging our service gives you increased control over the value of your Tooting leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tooting Lease Extension Case Summaries:

Bethany, Tooting, South West London,

Off the back of unsuccessful negotiations with the freeholder of her one bedroom flat in Tooting, Bethany initiated the lease extension process as the 80 year mark was quickly approaching. The lease extension completed in June 2005. The freeholder’s fees were negotiated to about 700 GBP.

Tooting case:

In 2010 we were called by Mr and Mrs. P Gómez who, having took over the lease of a studio flat in Tooting in April 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Tooting with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish on 15 October 2099. Taking into account 75 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.

Decision in Wandsworth

An example of a Lease Extension matter before the tribunal for a Tooting premises 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 number of years remaining on the existing lease(s) was 62.94 years.