Upper Tooting leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher amount will be due. Flat owners in Upper Tooting will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Upper Tooting with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Upper Tooting leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her garden flat in Upper Tooting, Emma commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The lease extension completed in September 2007. The landlord’s charges were negotiated to slightly above 500 pounds.
Last Autumn we were phoned by Mr and Mrs. D Mercier , who moved into a first floor flat in Upper Tooting in July 2007. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical properties in Upper Tooting with a long lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated on 4 October 2106. Taking into account 80 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2014 we were phoned by Ms B Murphy who, having moved into a one bedroom apartment in Upper Tooting in March 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar residencies in Upper Tooting with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish in 2086. Given that there were 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.