Narborough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Narborough residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Narborough you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Narborough flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold properties in Narborough with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
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 lawyer we work with provide it.
Last October Dylan, started to get near to the 80-year mark with the lease on his basement apartment in Narborough. In buying his property 19 years previously, the length of the lease was of no importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Dylan was able to extend his lease at the eleventh hour last March. Dylan and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had descended below 80 years, the amount would have increased by a minimum £925.
In 2014 we were contacted by Ms E Edwards who, having completed a one bedroom flat in Narborough in January 1998. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable properties in Narborough with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 billed per annum. The lease lapsed in 2090. Taking into account 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.
In 2011 we were approached by Mrs Isabella Howard who, having purchased a basement flat in Narborough in August 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Narborough with 100 year plus lease were worth £184,000. The average ground rent payable was £55 invoiced quarterly. The lease ended in 2079. Having 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.