Tolworth leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Tolworth will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Tolworth with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tolworth can be a difficult process. We recommend you get professional help from a conveyancer 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.
Off the back of unsuccessful negotiations with the landlord of her garden flat in Tolworth, Jennifer initiated the lease extension process as the eighty year threshold was fast nearing. The lease extension completed in January 2015. The landlord’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. K Moore who, having moved into a recently refurbished apartment in Tolworth in May 2004. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable residencies in Tolworth with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 billed yearly. The lease expiry date was in 2085. Taking into account 59 years left we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Tolworth property 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.