Northop leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Northop residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Northop you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Northop leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Northop,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Northop valuers.
Last October Logan, came perilously close to the 80-year mark with the lease on his ground floor flat in Northop. Having bought his property 18 years previously, the lease term was of no importance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Logan extended the lease just in the nick of time last March. Logan and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had slipped to less than eighty years, the price would have gone up by at least £875.
Last Christmas we were contacted by Mr and Mrs. C Wright , who owned a one bedroom apartment in Northop in September 2005. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable properties in Northop with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2080. Having 54 years remaining we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of expenses.
Ms H Smith was assigned a lease of a garden apartment in Northop in January 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Northop with 100 year plus lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 20 February 2091. Having 65 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.