When it comes to long leasehold premises in Notting Hill, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Notting Hill with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years left, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Notting Hill with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Notting Hill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Notting Hill valuers.
Last year Oscar, came seriously close to the 80-year mark with the lease on his ground floor flat in Notting Hill. In buying his property 18 years ago, the unexpired term was of minimal relevance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Oscar extended the lease just in the nick of time last May. Oscar and the landlord eventually agreed on the final figure of £6,000 . If the lease had dipped lower than eighty years, the premium would have escalated by a minimum £1,125.
Ms Y Martínez completed a basement flat in Notting Hill in September 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable premises in Notting Hill with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish in 2088. Having 63 years remaining we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus legals.
An example of a Lease Extension matter before the tribunal for a Notting Hill flat is 2 Grove House 95 Addison Road in October 2013. the Tribunal decided that the premium to bepaid for a new lease is £50,050. This case related to 1 flat. The remaining number of years on the lease was 68.4 years.