The re-sale value of a leasehold property in Upper Norwood is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year threshold. Current legislation enables Upper Norwood qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Upper Norwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her garden apartment in Upper Norwood, Sophie commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work completed in April 2015. The landlord’s charges were negotiated to about 450 GBP.
In 2013 we were phoned by Mr James Lewis who, having completed a studio flat in Upper Norwood in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Upper Norwood with an extended lease were worth £210,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2104. Taking into account 80 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension case for a Upper Norwood residence 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.