The closer a domestic lease in Northampton gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Northampton will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Northampton with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Northampton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 dealing with Northampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 George, started to get near to the 80-year mark with the lease on his two bedroom apartment in Northampton. Having purchased his flat 18 years ago, the lease term was of no interest. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. George extended the lease just ahead of time in August. George and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the premium would have increased by at least £1,100.
Last Winter we were e-mailed by Ms B Johnson , who purchased a one bedroom flat in Northampton in January 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Northampton with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2099. Given that there were 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Winter we were called by Dr Y Nguyen , who owned a first floor apartment in Northampton in October 2010. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Northampton with 100 year plus lease were valued around £248,000. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated in 2088. Given that there were 63 years left we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.