The market value of a leasehold property in Norton Woodseats is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that formalities can be concluded ahead of the eighty year cut off point. Leasehold Reform legislation enables Norton Woodseats qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Norton Woodseats with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Norton Woodseats,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Norton Woodseats valuers.
Subsequent to protracted negotiations with the landlord of her leasehold apartment in Norton Woodseats, Alisha started the lease extension process as the eighty year mark was quickly advancing. The transaction was finalised in February 2015. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. K Gómez acquired a first floor flat in Norton Woodseats in October 2004. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical residencies in Norton Woodseats with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease expiry date was on 22 March 2086. Taking into account 60 years remaining we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of legals.
In 2012 we were contacted by Ms W Gray who, having owned a one bedroom flat in Norton Woodseats in July 1999. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar flats in Norton Woodseats with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded on 27 February 2106. Having 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.