Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Upper Norwood. Clearly, the period of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Upper Norwood have the legal entitlement to extend the lease for an additional ninety years under statute. You should give careful consideration before delaying your Upper Norwood lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Upper Norwood,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upper Norwood valuers.
Half a year ago Aiden, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Upper Norwood. Having bought his home two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Aiden arranged for a lease extension at the eleventh hour in January. Aiden and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had gone below 80 years, the premium would have gone up by a minimum £950.
Last July we were approach by Dr T Green , who acquired a one bedroom apartment in Upper Norwood in April 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Upper Norwood with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated in 2077. Having 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
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 affected 1 flat. The unexpired term as at the valuation date was 26.38 years.