Normanton leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Normanton will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Normanton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Normanton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Normanton valuers.
Last October Logan, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Normanton. In buying his property two decades ago, the length of the lease was of no importance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Logan extended the lease just in the nick of time in May. Logan and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had descended to less than eighty years, the figure would have increased by a minimum £950.
In 2013 we were e-mailed by Mr and Mrs. H White who, having moved into a ground floor apartment in Normanton in April 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical homes in Normanton with a long lease were valued about £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out on 7 May 2105. Considering the 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
In 2012 we were approached by Mr and Mrs. G González who, having bought a purpose-built apartment in Normanton in January 2010. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Normanton with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced per annum. The lease ended on 13 February 2085. Given that there were 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.