With a long leasehold property in Northallerton, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Northallerton with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years left, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you better control over the value of your Northallerton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold proprietor of a high value apartment in Northallerton being sold with a lease of a few days over 59 years outstanding. Harvey informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mr C Girard purchased a first floor flat in Northallerton in February 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Northallerton with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed in 2105. Having 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last Spring we were e-mailed by Mrs J Thompson , who was assigned a lease of a garden apartment in Northallerton in May 2005. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Northallerton with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease end date was on 22 June 2094. Given that there were 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.