The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Northwood have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Northwood lease extension. Postponing the costs today simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold premises in Northwood with in excess of one hundred years left on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Lease extensions in Northwood can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Northwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Matthew, started to get near to the 80-year threshold with the lease on his studio flat in Northwood. Having bought his flat two decades ago, the unexpired term was of little importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Matthew was able to extend his lease just in the nick of time last March. Matthew and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £850.
Dr Anna Jackson took over the lease of a garden flat in Northwood in June 2002. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Northwood with an extended lease were worth £191,400. The mid-range ground rent payable was £55 collected monthly. The lease ended on 20 February 2080. Taking into account 54 years left we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Northwood property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The remaining number of years on the lease was 71 years.