When it comes to long leasehold property in Northop, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Northop with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Northop can be a difficult process. We recommend you obtain professional help 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 a wealth of experience dealing with Northop lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her two bedroom flat in Northop, Lauren initiated the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in November 2006. The landlord’s costs were negotiated to approximately 700 pounds.
Last year we were approach by Mr V André , who owned a purpose-built apartment in Northop in September 2009. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical properties in Northop with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed monthly. The lease concluded on 26 May 2092. Considering the 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Summer we were contacted by Mr Luke Moreau , who took over the lease of a first floor flat in Northop in May 2010. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Northop with an extended lease were valued around £275,000. The average amount of ground rent was £55 billed annually. The lease ran out in 2103. Taking into account 77 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.