Unfortunately that a Upper Norwood residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Upper Norwood property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Upper Norwood will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Upper Norwood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upper Norwood valuers.
Last October Finley, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Upper Norwood. In buying his property two decades ago, the length of the lease was of minimal interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Finley extended the lease at the eleventh hour in September. Finley and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had dropped to less than 80 years, the sum would have increased by a minimum £900.
In 2014 we were approached by Mr and Mrs. U Sánchez who, having took over the lease of a one bedroom apartment in Upper Norwood in March 1996. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical premises in Upper Norwood with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 20 July 2102. Considering the 78 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension case for a Upper Norwood residence is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case related to 1 flat. The remaining number of years on the lease was 26.38 years.