The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in South Norwood may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your South Norwood lease extension. Putting off that expense today simply escalates the premium you will ultimately have to pay to extend the lease.
Leasehold residencies in South Norwood with in excess of 100 years remaining on the lease are often referred to as ‘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 service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
The conveyancers that we work with undertake South Norwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Lewis, came precariously near to the eighty-year mark with the lease on his one bedroom apartment in South Norwood. Having purchased his flat two decades ago, the length of the lease was of little bearing. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Lewis extended the lease just in the nick of time last May. Lewis and the freeholder subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,150.
In 2009 we were called by Mr and Mrs. V Cooper who, having owned a one bedroom flat in South Norwood in May 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable properties in South Norwood with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated in 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension case for a South Norwood flat is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case affected 1 flat. The unexpired lease term was 26.38 years.