When it comes to domestic leasehold premises in Noak Hill, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Residents in Noak Hill with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Noak Hill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Noak Hill valuers.
Mason owned a conversion apartment in Noak Hill being sold with a lease of just over 59 years remaining. Mason informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were e-mailed by Mr and Mrs. P Anderson , who purchased a garden apartment in Noak Hill in February 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Noak Hill with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed on 24 November 2103. Having 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
An example of a Lease Extension case for a Noak Hill premises 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 remaining number of years on the lease was 57.5 years.