On the balance of probabilities if you own a flat in Normanton you actually own a long leasehold interest over your property
Leasehold residencies in Normanton with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Normanton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lewis owned a conversion apartment in Normanton being marketed with a lease of a few days over 72 years outstanding. Lewis informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2013 we were approached by Mr and Mrs. F Bernard who, having bought a ground floor flat in Normanton in July 1998. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Normanton with an extended lease were in the region of £237,600. The average amount of ground rent was £45 billed yearly. The lease expired in 2093. Taking into account 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.
Last Summer we were approach by Ms Francesca Stewart , who completed a one bedroom flat in Normanton in April 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Normanton with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed monthly. The lease lapsed in 2104. Taking into account 78 years outstanding we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.