The re-sale value of a leasehold property in Noak Hill is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be addressed in advance of the 80 year mark. Statute enables Noak Hill qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 better control over the value of your Noak Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful discussions with the landlord of her leasehold apartment in Noak Hill, Georgina started the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was finalised in September 2008. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. T Lambert completed a garden apartment in Noak Hill in October 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Noak Hill with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 12 September 2084. Having 59 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
An example of a Lease Extension decision for a Noak Hill property 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 unexpired term was 57.5 years.