Tooting leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Tooting tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tooting you would be well advised to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Tooting leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Santander | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Tooting,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tooting valuers.
Ethan was the the leasehold owner of a studio flat in Tooting on the market with a lease of a few days over sixty years unexpired. Ethan on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were called by Mrs Elizabeth François who, having moved into a ground floor apartment in Tooting in January 2005. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative residencies in Tooting with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease termination date was on 28 November 2106. Considering the 80 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus 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 was in relation to 1 flat. The unexpired term as at the valuation date was 62.94 years.