When it comes to residential leasehold property in Narborough, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Narborough with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Narborough with in excess of 100 years outstanding 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
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.
Following lengthy negotiations with the landlord of her garden flat in Narborough, Georgina initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction was finalised in September 2005. The freeholder’s charges were restricted to below 650 pounds.
In 2014 we were called by Mr F Lefebvre who, having owned a basement apartment in Narborough in March 1997. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Narborough with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 19 April 2097. Having 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Summer we were called by Mr and Mrs. K Ricardo , who took over the lease of a basement apartment in Narborough in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Narborough with an extended lease were worth £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease concluded on 18 April 2086. Taking into account 60 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £25,700 and £29,600 plus costs.