Totland 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 becomes more expensive. Most owners of residential leasehold property in Totland enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Totland you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 Totland can be a difficult process. We recommend you procure 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 a wealth of experience dealing with Totland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her studio flat in Totland, Hannah started the lease extension process as the eighty year mark was fast approaching. The transaction was finalised in October 2012. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. S Harris took over the lease of a studio apartment in Totland in September 2001. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar residencies in Totland with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 billed per annum. The lease ended on 26 October 2083. Given that there were 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
In 2014 we were called by Mrs L Rodríguez who, having took over the lease of a garden flat in Totland in September 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative residencies in Totland with a long lease were valued around £245,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 6 April 2094. Having 68 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.