With a long leasehold property in Upper Tooting, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Upper Tooting with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has below 80 years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Upper Tooting can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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 Upper Tooting lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Logan, started to get near to the 80-year mark with the lease on his leasehold flat in Upper Tooting. Having bought his flat two decades ago, the unexpired term was of no interest. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Logan arranged for a lease extension at the eleventh hour last January. Logan and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he had missed the deadline, the amount would have increased by at least £875.
Mr P Johnson bought a one bedroom apartment in Upper Tooting in October 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Upper Tooting with 100 year plus lease were in the region of £198,400. The average amount of ground rent was £65 collected yearly. The lease elapsed on 4 April 2084. Considering the 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
Mrs G Moreau owned a studio apartment in Upper Tooting in October 2009. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical flats in Upper Tooting with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease terminated in 2095. Taking into account 70 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.