For anyone whose Toton property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Toton with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Toton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold proprietor of a studio apartment in Toton being sold with a lease of a little over 72 years unexpired. Evan informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were contacted by Mr V Taylor , who moved into a newly refurbished flat in Toton in June 2010. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Toton with a long lease were worth £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 10 May 2075. Given that there were 50 years remaining we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.
Last Christmas we were phoned by Mr and Mrs. U Ward , who was assigned a lease of a garden apartment in Toton in March 1998. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Toton with a long lease were in the region of £280,000. The average ground rent payable was £45 billed monthly. The lease came to a finish on 12 May 2095. Given that there were 70 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.