On the balance of probabilities where you own a flat in Noak Hill you actually own a long leasehold interest over your property
Leasehold residencies in Noak Hill with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Noak Hill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Noak Hill valuers.
Last Christmas Ryan, started to get near to the eighty-year mark with the lease on his leasehold apartment in Noak Hill. In buying his flat two decades ago, the lease term was of little relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Ryan arranged for a lease extension just in the nick of time in July. Ryan and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £875.
In 2009 we were contacted by Mr and Mrs. V Lambert who, having moved into a first floor flat in Noak Hill in July 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Noak Hill with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease expired on 9 July 2103. Considering the 77 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Noak Hill flat 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 related to 1 flat. The unexpired term as at the valuation date was 57.5 years.