For those whose Upper Norwood flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold premises in Upper Norwood with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Upper Norwood can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Upper Norwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jackson, came seriously close to the eighty-year threshold with the lease on his purpose- built apartment in Upper Norwood. In buying his property two decades ago, the unexpired term was of minimal relevance. Luckily, he realised he needed to take steps soon on a lease extension. Jackson extended the lease at the eleventh hour last August. Jackson and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had descended below eighty years, the figure would have become more exhorbitant by a minimum £1,025.
Last Winter we were approach by Mr and Mrs. C Laurent , who moved into a basement apartment in Upper Norwood in June 2008. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Upper Norwood with an extended lease were valued about £250,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated in 2090. Considering the 64 years unexpired we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus expenses.
An example of a Lease Extension matter before the tribunal 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 residue of the current lease was 26.38 years.