As the the remaining lease term of a Northam residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Northam will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Northam with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Northam,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northam valuers.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Northam, Imogen commenced the lease extension process as the 80 year threshold was quickly nearing. The legal work completed in November 2010. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Dr W Mercier , who completed a studio flat in Northam in June 2010. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical flats in Northam with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed in 2092. Considering the 67 years remaining we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.
Last November we were called by Mr W Murphy , who took over the lease of a ground floor flat in Northam in March 2011. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar residencies in Northam with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded on 5 April 2103. Considering the 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.