With a residential leasehold property in Norton, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Residents in Norton with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years remaining, under the relevant statute the freeholder can calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Norton can be a difficult process. We recommend you procure 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 procuring Norton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her leasehold apartment in Norton, Anna commenced the lease extension process as the eighty year mark was quickly nearing. The lease extension was finalised in June 2013. The landlord’s fees were negotiated to a tad over four hundred GBP.
Mr B Rose acquired a studio flat in Norton in July 2000. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Norton with a long lease were valued around £246,800. The mid-range ground rent payable was £60 billed monthly. The lease end date was in 2075. Considering the 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of fees.
Dr Louise Bell acquired a purpose-built apartment in Norton in February 2008. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Norton with 100 year plus lease were valued about £208,200. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 7 September 2086. Considering the 61 years outstanding we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.