Totland leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Totland will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Totland,the lease extension experts 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 Totland valuers.
Last year Luca, started to get close to the eighty-year mark with the lease on his leasehold flat in Totland. Having bought his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Luca arranged for a lease extension just under the wire last January. Luca and the landlord subsequently settled on sum of £5,500 . If the lease had descended lower than 80 years, the price would have escalated by a minimum £875.
In 2010 we were contacted by Dr Georgia Bertrand who, having moved into a purpose-built apartment in Totland in September 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Totland with an extended lease were worth £193,400. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2084. Considering the 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including professional charges.
In 2014 we were contacted by Ms Holly Martin who, having purchased a ground floor apartment in Totland in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Totland with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish on 25 March 2095. Having 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of costs.