Northwood residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Northwood 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Northwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In 2014 Harvey, started to get near to the eighty-year threshold with the lease on his basement flat in Northwood. In buying his property two decades ago, the lease term was of no bearing. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Harvey arranged for a lease extension just ahead of time in July. Harvey and the freeholder via the management company in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,125.
Mr and Mrs. N King purchased a one bedroom flat in Northwood in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Northwood with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed in 2085. Given that there were 60 years left we estimated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Northwood property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired term as at the valuation date was 71 years.