When it comes to domestic leasehold property in Northop Hall, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Northop Hall with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Northop Hall with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Northop Hall leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her basement apartment in Northop Hall, Jade initiated the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension completed in February 2009. The landlord’s charges were kept to an absolute minimum.
Mr C Ali purchased a ground floor flat in Northop Hall in February 1995. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative homes in Northop Hall with an extended lease were in the region of £252,800. The average ground rent payable was £65 billed annually. The lease ran out in 2091. Considering the 65 years outstanding we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
Mr and Mrs. R Ricardo was assigned a lease of a purpose-built apartment in Northop Hall in October 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Northop Hall with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 billed yearly. The lease expired in 2080. Considering the 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including professional charges.