The market value of a leasehold property in Toton depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year threshold. Current legislation entitles Toton qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Toton with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Toton can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 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.
Half a year ago Omar, started to get close to the eighty-year mark with the lease on his basement flat in Toton. In buying his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, he realised he needed to take action soon on a lease extension. Omar extended the lease at the eleventh hour in September. Omar and the landlord eventually agreed on an amount of £6,000 . If the lease had slipped lower than 80 years, the sum would have gone up by at least £1,050.
Last Christmas we were phoned by Ms Alexandra Leroy , who bought a one bedroom flat in Toton in July 2005. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative homes in Toton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 27 July 2105. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
Last Winter we were phoned by Mr and Mrs. H King , who completed a basement flat in Toton in November 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Toton with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 24 May 2094. Considering the 68 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.