The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Norwood Green can extend the lease for a further ninety years in accordance with statute. Please think carefully before delaying your Norwood Green lease extension. Putting off the costs now simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold residencies in Norwood Green with over 100 years left on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Norwood Green,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Norwood Green valuers.
Harvey was the the leasehold owner of a 2 bedroom flat in Norwood Green on the market with a lease of a little over fifty eight years outstanding. Harvey informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. D Richardson who, having acquired a studio apartment in Norwood Green in July 2004. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar properties in Norwood Green with a long lease were worth £295,000. The average ground rent payable was £45 invoiced quarterly. The lease finished on 1 June 2099. Considering the 74 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
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 was in relation to 2 flats. The unexpired term as at the valuation date was 72.39 years.