Unfortunately that a Northallerton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Northallerton property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Northallerton will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Northallerton can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 dealing with Northallerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold owner of a 2 bedroom apartment in Northallerton being sold with a lease of fraction over 72 years outstanding. Ethan on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. B Morel owned a purpose-built apartment in Northallerton in April 2010. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Northallerton with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 7 June 2098. Considering the 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr Ashleigh Laurent completed a studio flat in Northallerton in November 2001. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Northallerton with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced annually. The lease finished in 2087. Having 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.