Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Northfield. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Northfield have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful deliberation before putting off your Northfield lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Northfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northfield valuers.
Off the back of protracted correspondence with the freeholder of her leasehold flat in Northfield, Victoria started the lease extension process as the eighty year mark was rapidly approaching. The transaction completed in September 2012. The freeholder’s costs were kept to an absolute minimum.
Last March we were approach by Mr and Mrs. L Green , who acquired a basement flat in Northfield in February 2006. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable homes in Northfield with a long lease were valued around £270,000. The average ground rent payable was £55 collected every twelve months. The lease termination date was in 2102. Taking into account 76 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Summer we were contacted by Mr Milo Morris , who took over the lease of a garden flat in Northfield in March 1996. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Northfield with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish in 2082. Having 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.