Norton Woodseats leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Norton Woodseats tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Norton Woodseats you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Norton Woodseats with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
Using our service gives you enhanced control over the value of your Norton Woodseats leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her purpose-built flat in Norton Woodseats, Mollie started the lease extension process as the eighty year threshold was swiftly coming. The lease extension completed in June 2008. The landlord’s charges were negotiated to about four hundred pounds.
In 2013 we were called by Mrs E Wood who, having purchased a purpose-built apartment in Norton Woodseats in March 2010. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable flats in Norton Woodseats with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed yearly. The lease concluded on 24 August 2105. Given that there were 79 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2012 we were called by Mr and Mrs. S Smith who, having moved into a one bedroom apartment in Norton Woodseats in February 2001. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical homes in Norton Woodseats with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2094. Having 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.