With a residential leasehold premises in Normanton, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Normanton with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Normanton with in excess of one hundred years left on the lease are sometimes 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Normanton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Normanton 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 James, started to get near to the eighty-year mark with the lease on his garden flat in Normanton. Having purchased his property two decades ago, the lease term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. James extended the lease just under the wire last June. James and the freeholder subsequently agreed on sum of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £950.
Mr and Mrs. L Lee acquired a purpose-built flat in Normanton in June 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Normanton with a long lease were in the region of £200,800. The average ground rent payable was £65 collected monthly. The lease ended on 10 May 2085. Considering the 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.
Dr F Flores was assigned a lease of a one bedroom flat in Normanton in June 2008. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable flats in Normanton with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 19 November 2096. Considering the 71 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.