With a residential leasehold property in Northallerton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Northallerton with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Northallerton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Northallerton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Northallerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a high value apartment in Northallerton on the market with a lease of just over sixty years left. John informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were John to exercise his statutory right. John procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. J Lambert , who acquired a studio flat in Northallerton in March 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Northallerton with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 billed per annum. The lease lapsed on 17 January 2092. Having 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. V Gunderson who, having owned a ground floor flat in Northallerton in May 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical properties in Northallerton with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2081. Having 55 years unexpired we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.