Upper Tooting residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Upper Tooting with over one hundred years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Upper Tooting lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Austin was the the leasehold owner of a 2 bedroom apartment in Upper Tooting on the market with a lease of a little over 61 years remaining. Austin on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Ms R Allen was assigned a lease of a first floor apartment in Upper Tooting in August 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Upper Tooting with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease terminated on 9 June 2104. Given that there were 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Mr and Mrs. R Hill took over the lease of a studio flat in Upper Tooting in June 2011. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Upper Tooting with a long lease were worth £191,000. The average amount of ground rent was £65 collected every twelve months. The lease lapsed on 20 May 2084. Given that there were 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of fees.