The value of Toton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Toton can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Toton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful negotiations with the landlord of her garden flat in Toton, Freya started the lease extension process as the eighty year deadline was rapidly advancing. The legal work was finalised in March 2015. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mrs Aimee Rivera who, having moved into a first floor flat in Toton in November 2001. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparative properties in Toton with a long lease were valued around £257,800. The average ground rent payable was £65 collected per annum. The lease expired in 2090. Taking into account 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.
In 2012 we were contacted by Mr and Mrs. V Kelly who, having took over the lease of a basement flat in Toton in May 2012. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Toton with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced yearly. The lease ran out on 6 October 2079. Taking into account 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including costs.