With a residential leasehold premises in Midsomer Norton, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years left. Residents in Midsomer Norton with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Midsomer Norton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Ibrahim was the the leasehold proprietor of a conversion flat in Midsomer Norton being sold with a lease of a few days over 59 years remaining. Ibrahim informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr Y Pérez who, having acquired a garden apartment in Midsomer Norton in January 2004. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Midsomer Norton with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2101. Taking into account 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2010 we were approached by Dr Y Petit who, having bought a studio apartment in Midsomer Norton in March 1997. The question was if we could estimate the price could be for a ninety year lease extension. Identical flats in Midsomer Norton with 100 year plus lease were worth £252,800. The average ground rent payable was £65 invoiced yearly. The lease expired on 10 September 2090. Considering the 65 years left we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.