The only way is down when it comes to Northern Moor lease terms. Northern Moor properties that have a lease term less than than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Northern Moor can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Northern Moor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Northern Moor, Charlotte started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension was concluded in September 2006. The landlord’s charges were kept to an absolute minimum.
Ms Amber Patel bought a basement flat in Northern Moor in June 2010. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Northern Moor with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced annually. The lease ended on 11 February 2091. Given that there were 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.
In 2012 we were e-mailed by Dr T Parker who, having moved into a one bedroom flat in Northern Moor in March 2001. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Northern Moor with 100 year plus lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2080. Considering the 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of expenses.