Midsomer Norton leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Midsomer Norton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Midsomer Norton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Midsomer Norton can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 a wealth of experience dealing with Midsomer Norton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jackson, came perilously near to the 80-year mark with the lease on his purpose- built apartment in Midsomer Norton. In buying his property two decades ago, the length of the lease was of little significance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jackson arranged for a lease extension just ahead of time in June. Jackson and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had dipped below 80 years, the premium would have gone up by at least £1,075.
In 2010 we were e-mailed by Mr and Mrs. V Wright who, having bought a purpose-built flat in Midsomer Norton in August 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical homes in Midsomer Norton with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease expiry date was in 2089. Given that there were 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Last Christmas we were called by Mr and Mrs. F Dupont , who moved into a one bedroom flat in Midsomer Norton in May 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Identical flats in Midsomer Norton with an extended lease were worth £184,000. The average amount of ground rent was £55 collected annually. The lease came to a finish on 3 October 2078. Having 53 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.