Why you should commence your Totland lease extension

Why you should start your Totland lease extension today:

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

Totland residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

Totland property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.

Lenders may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get jittery at around 75 years. This may be problematic once you wish to sell or refinance your flat as it will be effectively unmortgageable. You may have no immediate intention to sell but when you do your purchaser will need to hold off for two years before being able to start the legal procedures for a lease extension.

Get in touch with one of our Totland lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Totland,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Totland valuers.

Totland Lease Extension Case Studies:

David, Totland, Isle Of Wight,

David was the the leasehold owner of a high value flat in Totland being sold with a lease of a little over sixty years unexpired. David on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.

Totland case:

In 2012 we were e-mailed by Mr and Mrs. C Evans who, having bought a garden apartment in Totland in March 1996. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable properties in Totland with an extended lease were worth £225,400. The average amount of ground rent was £45 collected monthly. The lease expired on 25 November 2090. Having 64 years left we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.

Totland case:

Last October we were contacted by Mr Arthur Hill , who took over the lease of a first floor apartment in Totland in January 1999. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative residencies in Totland with an extended lease were valued about £270,000. The average ground rent payable was £55 collected annually. The lease expired in 2101. Taking into account 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.