Unfortunately that a Upper Tooting residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Upper Tooting property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under eighty years, you will end up paying 50% 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 additional value that a lease extension will add the property The majority of leasehold owners in Upper Tooting will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Upper Tooting can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with 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.
Connor was the the leasehold proprietor of a high value flat in Upper Tooting on the market with a lease of a little over fifty eight years unexpired. Connor informally approached his freeholder a well known Bristol-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 on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. B Mason who, having was assigned a lease of a first floor flat in Upper Tooting in May 2008. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable homes in Upper Tooting with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2096. Having 71 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
In 2009 we were contacted by Mr Jonathan Scott who, having acquired a ground floor flat in Upper Tooting in July 2006. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar flats in Upper Tooting with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected annually. The lease came to a finish on 25 October 2076. Considering the 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of costs.