For those whose Northern Moor property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Northern Moor can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 procuring 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.
Eli was the the leasehold owner of a conversion flat in Northern Moor on the market with a lease of fraction over 72 years remaining. Eli on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr T Flores purchased a studio apartment in Northern Moor in January 2003. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Northern Moor with an extended lease were in the region of £267,600. The average amount of ground rent was £65 invoiced annually. The lease ran out on 18 January 2093. Having 67 years outstanding we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including costs.
Last Christmas we were called by Dr D López , who completed a purpose-built flat in Northern Moor in April 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Identical properties in Northern Moor with a long lease were worth £206,200. The average ground rent payable was £60 collected per annum. The lease terminated in 2082. Given that there were 56 years unexpired we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.