Northop Hall leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Leasehold owners in Northop Hall will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Northop Hall,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northop Hall valuers.
Last Autumn Luke, came critically near to the 80-year mark with the lease on his two bedroom apartment in Northop Hall. In buying his home two decades ago, the length of the lease was of little significance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Luke arranged for a lease extension at the eleventh hour last September. Luke and the freeholder eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,075.
Last year we were called by Mr and Mrs. G Morgan , who took over the lease of a first floor apartment in Northop Hall in April 2010. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar homes in Northop Hall with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2103. Considering the 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last month we were approach by Dr Nathan Bennett , who was assigned a lease of a newly refurbished flat in Northop Hall in June 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Northop Hall with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease expired in 2092. Considering the 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of legals.