Noak Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Noak Hill enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Noak Hill you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Noak Hill flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Noak Hill with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Noak Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her basement apartment in Noak Hill, Freya started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction completed in September 2005. The landlord’s fees were restricted to approximately 600 pounds.
Last Winter we were approach by Dr Dexter Bennett , who bought a one bedroom flat in Noak Hill in July 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical homes in Noak Hill with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2105. Considering the 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision for a Noak Hill property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired term as at the valuation date was 57.5 years.