The market value of a leasehold property in Noak Hill depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year cut off point. Leasehold Reform legislation enables Noak Hill qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Noak Hill with in excess of 100 years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Noak Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her leasehold flat in Noak Hill, Bethany started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was finalised in November 2008. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. T Kelly who, having moved into a garden apartment in Noak Hill in April 2010. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar flats in Noak Hill with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease terminated in 2095. Given that there were 69 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension case for a Noak Hill residence 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 affected 1 flat. The unexpired term was 57.5 years.