Upper Norwood leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Upper Norwood will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Upper Norwood with more than 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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 conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Harry was the the leasehold proprietor of a high value apartment in Upper Norwood being marketed with a lease of just over fifty eight years unexpired. Harry on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2009 we were called by Mr John Petit who, having moved into a garden apartment in Upper Norwood in January 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Upper Norwood with 100 year plus lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease expired in 2086. Taking into account 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.
An example of a Lease Extension case for a Upper 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 was in relation to 1 flat. The unexpired term was 26.38 years.