Main reasons to commence your Norton lease extension

Main reasons to commence your Norton lease extension today:

A Norton lease depreciates with the years remaining on the lease.

With a residential leasehold property in Norton, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Norton with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

Norton property with a lease extension is almost the same value as a freehold

Leasehold properties in Norton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may decide not to lend on a short lease

Mortgage companies are making their criteria more stringent and many now want flats to have at least sixty if not seventy years left once the mortgage has expired. As a number of flats in Norton were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Norton lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Norton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Norton valuers.

Norton Lease Extension Case Summaries:

Joseph, Norton, Stockton on Tees

Last year Joseph, started to get near to the 80-year threshold with the lease on his one bedroom flat in Norton. Having purchased his flat two decades ago, the lease term was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Joseph arranged for a lease extension just under the wire last April. Joseph and the landlord eventually settled on the final figure of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by at least £975.

Norton case:

In 2013 we were called by Ms I Gómez who, having was assigned a lease of a recently refurbished apartment in Norton in November 1995. The question was if we could approximate the premium could be for a ninety year lease extension. Identical homes in Norton with 100 year plus lease were valued around £173,800. The average ground rent payable was £65 billed per annum. The lease termination date was in 2081. Having 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.

Norton case:

Mr Joshua David was assigned a lease of a one bedroom apartment in Norton in September 2000. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Norton with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 1 February 2092. Taking into account 66 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.