Northampton residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold premises in Northampton with over one hundred 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with procure Northampton 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 conveyancer we work with provide it.
16 months ago Aiden, started to get near to the eighty-year mark with the lease on his garden apartment in Northampton. Having bought his home twenty years previously, the lease term was of no significance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Aiden extended the lease at the eleventh hour in June. Aiden and the freeholder in the end agreed on sum of £6,000 . If the lease had gone lower than 80 years, the amount would have escalated by at least £1,150.
In 2013 we were phoned by Mr and Mrs. V Hernández who, having purchased a one bedroom apartment in Northampton in April 2004. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Identical residencies in Northampton with 100 year plus lease were worth £280,000. The average ground rent payable was £45 invoiced yearly. The lease expired on 5 June 2095. Having 69 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Last Winter we were e-mailed by Mr Cameron Turner , who owned a one bedroom apartment in Northampton in May 2001. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative premises in Northampton with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated on 2 November 2084. Given that there were 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.