The only way is down when it comes to Toton lease terms. Toton properties that have a lease term lower than eighty years will drop in value at a rapid rate, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Toton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold owner of a 2 bedroom flat in Toton on the market with a lease of a few days over 72 years unexpired. Leon on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. L Pérez bought a garden flat in Toton in July 2004. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable flats in Toton with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 3 January 2093. Having 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
In 2009 we were contacted by Mr and Mrs. Y Martin who, having moved into a ground floor apartment in Toton in September 2007. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Toton with an extended lease were in the region of £206,200. The average ground rent payable was £60 collected every twelve months. The lease elapsed on 18 May 2082. Considering the 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.