When it comes to domestic leasehold property in Tolworth, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Leasehold owners in Tolworth with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Tolworth with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
Lender | Requirement |
---|---|
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
Yorkshire 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. |
Engaging our service gives you better control over the value of your Tolworth 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her basement apartment in Tolworth, Paige commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension was finalised in September 2009. The landlord’s costs were kept to an absolute minimum.
Ms Elizabeth Lefèvre moved into a ground floor apartment in Tolworth in September 2000. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar residencies in Tolworth with an extended lease were in the region of £191,400. The average ground rent payable was £55 collected per annum. The lease finished on 14 January 2078. Given that there were 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.
An example of a Lease Extension matter before the tribunal for a Tolworth flat 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 related to 1 flat.