With a domestic leasehold property in Totteridge, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Totteridge with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the current legislation the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Totteridge with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a landlord in Totteridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Totteridge valuers.
Aaron owned a 2 bedroom flat in Totteridge being sold with a lease of fraction over 59 years unexpired. Aaron informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last year we were approach by Mr and Mrs. L Alexander , who was assigned a lease of a garden flat in Totteridge in May 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative homes in Totteridge with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2089. Having 64 years outstanding we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.
An example of a Lease Extension matter before the tribunal for a Totteridge property is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case related to 1 flat. The unexpired lease term was 76 years.