North End leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in North End will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure North End 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 conveyancing solicitor we work with provide it.
Jayden was the the leasehold proprietor of a high value apartment in North End on the market with a lease of a few days over 72 years unexpired. Jayden informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. N Bailey who, having took over the lease of a ground floor apartment in North End in March 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in North End with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2095. Taking into account 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a North End flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired lease term was 76 years.