The only way is down when it comes to Upper Norwood lease terms. Upper Norwood leaseholds that have a remaining term less than than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| 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. |
The conveyancers that we work with procure Upper 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 lawyer we work with provide it.
During the course of the last few months Benjamin, came very close to the eighty-year threshold with the lease on his purpose- built flat in Upper Norwood. Having bought his home two decades ago, the lease term was of minimal relevance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Benjamin extended the lease at the eleventh hour in August. Benjamin and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,100.
In 2009 we were e-mailed by Mr David Girard who, having completed a first floor flat in Upper Norwood in June 2002. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Upper Norwood with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 16 June 2100. Given that there were 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension case for a Upper Norwood premises 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 related to 1 flat. The unexpired term was 26.38 years.