Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Noak Hill. Inevitably, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Noak Hill have the right to extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Noak Hill lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Noak Hill can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 Noak Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold owner of a studio apartment in Noak Hill being sold with a lease of a little over 61 years remaining. Ollie on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2012 we were phoned by Mrs Victoria Patel who, having took over the lease of a one bedroom apartment in Noak Hill in June 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Noak Hill with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed in 2080. Considering the 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of expenses.
An example of a Lease Extension case for a Noak Hill premises is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired residue of the current lease was 57.5 years.