When it comes to residential leasehold premises in South Normanton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in South Normanton with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in South Normanton with over 100 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in South Normanton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Normanton valuers.
Jamie was the the leasehold owner of a studio flat in South Normanton on the market with a lease of a few days over 72 years outstanding. Jamie informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mr E Ricardo , who owned a studio apartment in South Normanton in March 1998. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative premises in South Normanton with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed in 2089. Given that there were 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.
Last Winter we were approach by Dr Rory Martínez , who owned a first floor flat in South Normanton in October 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in South Normanton with an extended lease were worth £270,000. The average amount of ground rent was £55 collected annually. The lease concluded on 21 August 2100. Having 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.