For anyone whose Northop Hall home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold premises in Northop Hall with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Northop Hall can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Northop Hall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan was the the leasehold proprietor of a high value flat in Northop Hall being sold with a lease of just over 61 years remaining. Ryan informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Dr Harrison Mason owned a one bedroom flat in Northop Hall in June 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Northop Hall with 100 year plus lease were valued around £184,000. The mid-range ground rent payable was £55 collected annually. The lease concluded on 5 October 2078. Taking into account 53 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
In 2013 we were e-mailed by Mr and Mrs. G Lefèvre who, having moved into a basement apartment in Northop Hall in April 2010. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable premises in Northop Hall with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed on 26 August 2098. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.