Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in South Normanton. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in South Normanton have the right to extend the lease for an additional ninety years in accordance with statute. You should give due deliberation before delaying your South Normanton lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in South Normanton can be a difficult process. We recommend you secure guidance 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 South Normanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis owned a high value apartment in South Normanton on the market with a lease of a little over sixty years left. Lewis on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were approached by Mr Edward Flores who, having completed a one bedroom flat in South Normanton in August 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in South Normanton with a long lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease lapsed on 2 September 2104. Having 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Dr Riley Mason took over the lease of a one bedroom flat in South Normanton in November 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in South Normanton with 100 year plus lease were valued around £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease expired on 2 November 2084. Taking into account 58 years remaining we calculated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus professional charges.