Norton leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Flat owners in Norton will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Norton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her ground floor flat in Norton, Millie commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The legal work was concluded in October 2009. The landlord’s charges were negotiated to about 450 pounds.
In 2011 we were approached by Mr Jamie Nelson who, having owned a purpose-built apartment in Norton in May 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar properties in Norton with a long lease were worth £242,600. The average ground rent payable was £45 billed yearly. The lease ended on 13 June 2093. Considering the 67 years outstanding we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Last Summer we were phoned by Dr K López , who owned a one bedroom flat in Norton in June 1997. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparable residencies in Norton with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2104. Given that there were 78 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.