The market value of Northop Hall leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than 80 years
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Northop Hall can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Last year Adam, came seriously close to the 80-year mark with the lease on his one bedroom apartment in Northop Hall. In buying his property 18 years previously, the unexpired term was of little significance. Luckily, he became aware that he needed to take action soon on a lease extension. Adam arranged for a lease extension just under the wire last June. Adam and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the figure would have gone up by at least £875.
In 2014 we were contacted by Ms Rachel Wright who, having acquired a ground floor flat in Northop Hall in May 2005. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical homes in Northop Hall with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected per annum. The lease termination date was in 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
Last March we were e-mailed by Mr and Mrs. T Lambert , who completed a purpose-built apartment in Northop Hall in May 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Northop Hall with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced yearly. The lease finished in 2104. Considering the 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.