The nearer a domestic lease in Northop Hall gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Northop Hall will meet the qualifying criteria; however a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Northop Hall,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Northop Hall valuers.
Two years ago Finley, came critically near to the 80-year mark with the lease on his first floor flat in Northop Hall. Having purchased his home twenty years previously, the length of the lease was of little interest. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Finley was able to extend his lease at the eleventh hour in January. Finley and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £925.
In 2009 we were e-mailed by Mr and Mrs. P Bell who, having purchased a garden apartment in Northop Hall in July 1998. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical homes in Northop Hall with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish on 4 August 2085. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £25,700 and £29,600 exclusive of fees.
Mr and Mrs. G Smith completed a newly refurbished flat in Northop Hall in May 1996. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Northop Hall with an extended lease were in the region of £210,000. The average ground rent payable was £50 collected quarterly. The lease elapsed in 2105. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.