Chances are that if you own a flat in Norwood Green you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Norwood Green,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Norwood Green valuers.
Half a year ago Luca, started to get near to the 80-year threshold with the lease on his ground floor flat in Norwood Green. In buying his home two decades ago, the lease term was of little bearing. by good luck, he noticed he needed to take action soon on a lease extension. Luca extended the lease at the eleventh hour in January. Luca and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have gone up by at least £950.
In 2013 we were phoned by Mr and Mrs. O Howard who, having bought a garden apartment in Norwood Green in October 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative premises in Norwood Green with an extended lease were worth £280,000. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2094. Given that there were 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Norwood Green premises 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 related to 2 flats. The unexpired term as at the valuation date was 72.39 years.