When it comes to long leasehold premises in Northfield, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Northfield with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Northfield with more than 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Northfield leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold proprietor of a conversion flat in Northfield being sold with a lease of fraction over 59 years unexpired. Blake informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were e-mailed by Mr and Mrs. I Edwards , who acquired a ground floor apartment in Northfield in January 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Northfield with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out in 2099. Given that there were 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last Christmas we were e-mailed by Mrs Alice Torres , who bought a newly refurbished apartment in Northfield in November 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Northfield with a long lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease elapsed on 8 July 2079. Having 54 years left we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus fees.