Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Toton. Clearly, the term of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Toton have the right to extend the lease for an additional ninety years in accordance with statute. You should give careful deliberation before putting off your Toton lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Toton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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.
During the course of the last few months Hunter, came precariously near to the eighty-year mark with the lease on his first floor flat in Toton. In buying his home two decades ago, the unexpired term was of little importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Hunter was able to extend his lease at the eleventh hour in May. Hunter and the landlord eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,025.
Last Summer we were phoned by Dr Alisha Baker , who purchased a basement apartment in Toton in September 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Toton with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 22 May 2081. Taking into account 55 years outstanding we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.
In 2009 we were approached by Mr and Mrs. G Jones who, having took over the lease of a garden flat in Toton in September 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical homes in Toton with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 24 July 2101. Given that there were 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.