Unfortunately that a Northampton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Northampton property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of 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 Northampton will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Northampton with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
Engaging our service gives you increased control over the value of your Northampton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Nathaniel, started to get near to the eighty-year mark with the lease on his basement flat in Northampton. In buying his home two decades ago, the unexpired term was of no importance. Fortunately, he realised he needed to take action soon on Extending the lease. Nathaniel extended the lease just under the wire last May. Nathaniel and the landlord eventually settled on sum of £6,000 . If he not met the deadline, the amount would have increased by at least £1,100.
In 2010 we were phoned by Mr and Mrs. T Laurent who, having was assigned a lease of a basement flat in Northampton in February 2010. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative premises in Northampton with an extended lease were worth £240,600. The average ground rent payable was £65 billed annually. The lease lapsed on 28 March 2088. Having 62 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.
Dr Max Turner acquired a one bedroom flat in Northampton in September 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Identical premises in Northampton with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed in 2077. Given that there were 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.