With a long leasehold premises in Norwood Green, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Norwood Green with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Norwood Green 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.
Last Winter Hunter, started to get near to the eighty-year threshold with the lease on his basement apartment in Norwood Green. In buying his property two decades ago, the unexpired term was of no significance. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Hunter arranged for a lease extension just ahead of time in September. Hunter and the freeholder via the managing agents ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by a minimum £975.
In 2010 we were approached by Mr and Mrs. R Campbell who, having purchased a garden apartment in Norwood Green in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Norwood Green with an extended lease were valued around £240,600. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2087. Given that there were 62 years unexpired we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.
An example of a Freehold Enfranchisement case for a Norwood Green property is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case affected 2 flats. The remaining number of years on the lease was 72.39 years.