Norwood Green leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Norwood Green residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Norwood Green you would be well advised to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Norwood Green flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a landlord in Norwood Green,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Norwood Green valuers.
Half a year ago Jasper, started to get close to the 80-year mark with the lease on his studio apartment in Norwood Green. In buying his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Jasper was able to extend his lease just ahead of time in July. Jasper and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the premium would have increased by a minimum £1,150.
In 2010 we were contacted by Ms Rachael Rogers who, having completed a one bedroom flat in Norwood Green in November 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical premises in Norwood Green with an extended lease were valued about £198,800. The average amount of ground rent was £55 collected monthly. The lease ran out on 21 November 2080. Given that there were 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Norwood Green flat is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case related to 2 flats. The unexpired residue of the current lease was 72.39 years.