Northop leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Leasehold owners in Northop will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Northop with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Northop leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold owner of a conversion flat in Northop on the market with a lease of just over 61 years remaining. Mason informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2011 we were called by Mrs C Ramírez who, having owned a one bedroom flat in Northop in June 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar homes in Northop with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated in 2099. Given that there were 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Mrs Emma Thomas owned a ground floor flat in Northop in April 1996. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative premises in Northop with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2079. Taking into account 53 years as a residual term we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of legals.