Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Northfield. Clearly, the period of lease left shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Northfield have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful attention before putting off your Northfield lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold premises in Northfield with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Northfield can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 Northfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her studio flat in Northfield, Chelsea commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The lease extension was finalised in September 2012. The freeholder’s charges were restricted to about four hundred GBP.
In 2009 we were approached by Mr Aarav Mason who, having acquired a newly refurbished apartment in Northfield in October 2010. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Northfield with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out in 2075. Taking into account 50 years left we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.
Mrs P Richardson acquired a one bedroom flat in Northfield in October 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical residencies in Northfield with an extended lease were valued about £203,200. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2086. Given that there were 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.