Tolworth leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Tolworth will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Tolworth with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tolworth can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 Tolworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Max, started to get close to the 80-year threshold with the lease on his first floor flat in Tolworth. In buying his property two decades ago, the unexpired term was of minimal concern. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Max was able to extend his lease just in the nick of time last April. Max and the freeholder via the management company ultimately settled on a premium of £6,000 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £1,075.
Mr and Mrs. S Taylor took over the lease of a recently refurbished flat in Tolworth in January 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Tolworth with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed on 2 June 2106. Considering the 80 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Tolworth premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.