It’s a harsh truth that a Northop Hall residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Northop Hall property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Northop Hall will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Northop Hall can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience dealing with 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.
Half a year ago Charlie, came very near to the eighty-year mark with the lease on his one bedroom apartment in Northop Hall. In buying his property two decades ago, the lease term was of little significance. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Charlie arranged for a lease extension at the eleventh hour in July. Charlie and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £925.
In 2011 we were contacted by Dr D Morel who, having bought a one bedroom flat in Northop Hall in November 2011. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical properties in Northop Hall with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease finished on 27 February 2093. Having 67 years unexpired we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.
Mrs Rachael Martínez was assigned a lease of a basement flat in Northop Hall in April 2003. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative properties in Northop Hall with 100 year plus lease were worth £201,200. The mid-range ground rent payable was £55 billed quarterly. The lease expired on 26 July 2082. Given that there were 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.