The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Northam can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Northam lease extension. Putting off that expense today simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold residencies in Northam with more than 100 years remaining on the lease are sometimes referred to as ‘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 upside in purchasing 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Northam 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 lawyer we work with provide it.
Two years ago Sam, came dangerously close to the 80-year mark with the lease on his two bedroom flat in Northam. In buying his property 18 years ago, the length of the lease was of minimal bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Sam arranged for a lease extension at the eleventh hour last May. Sam and the landlord subsequently settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £900.
In 2009 we were contacted by Mrs Bethan Morel who, having purchased a purpose-built flat in Northam in August 2005. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in Northam with a long lease were in the region of £200,800. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2085. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus fees.
Last Autumn we were contacted by Mr and Mrs. A Morris , who purchased a recently refurbished apartment in Northam in April 2007. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable flats in Northam with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2096. Having 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.