The value of Tottenham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is below than 80 years
Leasehold residencies in Tottenham with over 100 years remaining 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Lease extensions in Tottenham can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Tottenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Aaron, came critically close to the 80-year mark with the lease on his garden apartment in Tottenham. In buying his flat 19 years previously, the unexpired term was of minimal significance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Aaron extended the lease at the eleventh hour last September. Aaron and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £850.
Last Spring we were contacted by Mr Y Harris , who bought a basement apartment in Tottenham in February 2008. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparative properties in Tottenham with a long lease were valued about £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2083. Considering the 57 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Tottenham premises 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 related to 2 flats. The remaining number of years on the lease was 83.33 and 77.3.