The only way is down when it comes to Notting Hill lease terms. Notting Hill properties that have a residual term shorter than 80 years will drop in market price even faster, and the cost to extend your lease will go up.
Leasehold premises in Notting Hill with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 solicitors 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 Notting Hill valuers.
Last year Jack, started to get near to the eighty-year mark with the lease on his leasehold flat in Notting Hill. Having purchased his home 19 years ago, the length of the lease was of minimal interest. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Jack was able to extend his lease just in the nick of time last September. Jack and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had gone below 80 years, the price would have escalated by a minimum £850.
In 2012 we were contacted by Mr and Mrs. G Bailey who, having was assigned a lease of a ground floor apartment in Notting Hill in September 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable homes in Notting Hill with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 22 September 2096. Considering the 70 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension case 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.