When it comes to domestic leasehold property in Northfield, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Northfield with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Northfield with in excess of one hundred years left on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Retaining our service will provide you enhanced control over the value of your Northfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her garden apartment in Northfield, Francesca commenced the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in November 2009. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were called by Mrs F Nelson , who was assigned a lease of a garden apartment in Northfield in August 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable homes in Northfield with an extended lease were in the region of £210,600. The average ground rent payable was £45 collected annually. The lease ran out on 10 April 2087. Taking into account 62 years left we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
In 2014 we were phoned by Dr T Clark who, having completed a basement flat in Northfield in February 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar properties in Northfield with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 7 October 2098. Given that there were 73 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.