Northfleet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Northfleet residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Northfleet you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Northfleet flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Northfleet with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Northfleet,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northfleet valuers.
Two years ago Lewis, started to get near to the eighty-year threshold with the lease on his first floor flat in Northfleet. Having purchased his home two decades ago, the lease term was of no bearing. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Lewis was able to extend his lease just in the nick of time last July. Lewis and the landlord subsequently agreed on sum of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,150.
In 2011 we were called by Mr V Edwards who, having bought a one bedroom apartment in Northfleet in February 2005. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Northfleet with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced yearly. The lease finished on 21 October 2097. Given that there were 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2009 we were phoned by Dr U Thomas who, having bought a first floor flat in Northfleet in January 2008. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical properties in Northfleet with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2086. Taking into account 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.