The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Norton Woodseats have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Norton Woodseats lease extension. Putting off that expense today simply increases the price you will ultimately have to pay for a lease extension.
Leasehold premises in Norton Woodseats with more than one hundred years remaining 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Norton Woodseats leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Charlie, started to get near to the 80-year threshold with the lease on his ground floor flat in Norton Woodseats. Having purchased his property twenty years previously, the length of the lease was of minimal concern. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Charlie extended the lease at the eleventh hour in May. Charlie and the freeholder via the management company in the end agreed on a premium of £5,000 . If the lease had dropped to less than 80 years, the premium would have increased by at least £1,025.
In 2013 we were phoned by Mr Y Thompson who, having completed a recently refurbished apartment in Norton Woodseats in October 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Norton Woodseats with an extended lease were worth £216,000. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2083. Considering the 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
In 2013 we were contacted by Mr and Mrs. P Ward who, having owned a studio apartment in Norton Woodseats in April 2003. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar residencies in Norton Woodseats with a long lease were worth £200,000. The average ground rent payable was £50 billed monthly. The lease expiry date was in 2103. Given that there were 78 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.