Chances are that where you own a flat in Norton Woodseats you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you better control over the value of your Norton Woodseats leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luke, started to get near to the eighty-year mark with the lease on his garden flat in Norton Woodseats. Having purchased his property 19 years ago, the length of the lease was of no relevance. Fortunately, he noticed he needed to take action soon on a lease extension. Luke was able to extend his lease just in the nick of time last April. Luke and the landlord eventually agreed on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £1,000.
In 2013 we were called by Mr and Mrs. G Nelson who, having acquired a one bedroom apartment in Norton Woodseats in April 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Norton Woodseats with an extended lease were worth £198,800. The average ground rent payable was £55 invoiced monthly. The lease termination date was in 2081. Given that there were 55 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of fees.
Dr J Khan completed a purpose-built apartment in Norton Woodseats in September 2005. We are asked if we could estimate the premium could be to extend the lease by ninety years. Similar premises in Norton Woodseats with a long lease were in the region of £295,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2101. Given that there were 75 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.