Unfortunately that a Upper Tooting residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Upper Tooting property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Upper Tooting will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Upper Tooting with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages |
Irrespective of whether you are a tenant or a freeholder in Upper Tooting,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upper Tooting valuers.
Jamie was the the leasehold proprietor of a studio apartment in Upper Tooting on the market with a lease of just over 61 years unexpired. Jamie on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2014 we were approached by Mr and Mrs. H Jones who, having purchased a studio apartment in Upper Tooting in January 2004. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Upper Tooting with a long lease were valued about £183,600. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2083. Taking into account 57 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Dr Jonathan Patel purchased a one bedroom apartment in Upper Tooting in May 1995. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparative flats in Upper Tooting with a long lease were worth £250,000. The average amount of ground rent was £50 collected annually. The lease ended on 15 September 2094. Considering the 68 years left we approximated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including costs.