Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Northleach. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Northleach have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful deliberation before putting off your Northleach lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Northleach leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold owner of a 2 bedroom apartment in Northleach on the market with a lease of a few days over fifty eight years left. John informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were John to exercise his statutory right. John obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last month we were phoned by Ms E David , who bought a basement apartment in Northleach in April 2002. The question was if we could estimate the premium would be for a ninety year lease extension. Identical premises in Northleach with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2105. Taking into account 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
In 2011 we were approached by Mrs Tia Lefèvre who, having bought a basement apartment in Northleach in May 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Northleach with an extended lease were valued about £275,000. The average ground rent payable was £45 collected yearly. The lease termination date was in 2094. Having 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.