There is no doubt about it a leasehold property in Narborough is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Narborough will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Narborough with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| 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. |
| Godiva Mortgages | 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. 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. |
Lease extensions in Narborough can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 Narborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Sebastian, started to get close to the eighty-year threshold with the lease on his garden flat in Narborough. In buying his home two decades ago, the length of the lease was of minimal concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Sebastian arranged for a lease extension just under the wire last January. Sebastian and the freeholder in the end agreed on an amount of £6,000 . If the lease had gone below 80 years, the premium would have become more exhorbitant by at least £975.
In 2010 we were approached by Mrs Isabelle Torres who, having bought a garden flat in Narborough in March 2006. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable properties in Narborough with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected yearly. The lease elapsed on 7 November 2100. Considering the 74 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2011 we were approached by Mr and Mrs. M Wood who, having took over the lease of a basement apartment in Narborough in July 2006. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Narborough with 100 year plus lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced annually. The lease termination date was in 2089. Having 63 years remaining we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.