The closer a domestic lease in Tottenham gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Tottenham will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Tottenham with in excess of one hundred years unexpired on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | 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. |
Using our service gives you increased control over the value of your Tottenham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Dexter, started to get close to the 80-year threshold with the lease on his garden flat in Tottenham. Having bought his home 19 years ago, the unexpired term was of minimal significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Dexter arranged for a lease extension just under the wire last August. Dexter and the landlord eventually agreed on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £875.
In 2014 we were contacted by Mrs V Brown who, having purchased a purpose-built apartment in Tottenham in October 1999. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable residencies in Tottenham with an extended lease were valued around £227,800. The mid-range amount of ground rent was £45 collected yearly. The lease ended in 2089. Considering the 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Tottenham flat is 30 Strode Road in June 2013. Following a vesting order by Edmonton County Court on 20th February 2013 the Tribunal arrived at a valuation for enfranchisement of £10,256 for the premises (£4,074 for the Ground Floor Flat and £6182 for the First Floor Flat) and £100 for the appurtenant land. This case affected 2 flats. The unexpired term as at the valuation date was 83.33 and 77.3.