Chances are that if you own a flat in Narborough you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with undertake Narborough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
John was the the leasehold owner of a 2 bedroom flat in Narborough on the market with a lease of just over fifty eight years unexpired. John informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. E Collins who, having bought a newly refurbished apartment in Narborough in August 2004. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Narborough with a long lease were in the region of £230,800. The average amount of ground rent was £60 collected yearly. The lease expired on 8 March 2085. Given that there were 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of legals.
In 2012 we were e-mailed by Dr K Brooks who, having was assigned a lease of a purpose-built flat in Narborough in November 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Narborough with 100 year plus lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 11 April 2105. Having 80 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.