The nearer a domestic lease in Normanton gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Normanton will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Normanton with more than 100 years unexpired 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 estate 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Normanton 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.
Thomas was the the leasehold owner of a conversion apartment in Normanton on the market with a lease of just over 59 years left. Thomas informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2014 we were phoned by Dr Cameron Roberts who, having purchased a purpose-built apartment in Normanton in March 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Normanton with an extended lease were valued around £227,800. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2090. Given that there were 65 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Ms Y Moreau purchased a studio apartment in Normanton in July 2002. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Normanton with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 27 February 2101. Considering the 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.