When it comes to long leasehold premises in South Normanton, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in South Normanton with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than 80 years remaining, under the current statute the landlord can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake South Normanton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Aarav was the the leasehold owner of a conversion flat in South Normanton being marketed with a lease of fraction over 72 years remaining. Aarav on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2012 we were approached by Dr Sebastian Scott who, having owned a first floor apartment in South Normanton in February 2005. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative homes in South Normanton with a long lease were worth £193,400. The mid-range ground rent payable was £65 collected annually. The lease termination date was in 2085. Having 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
Ms Katherine Hill completed a first floor flat in South Normanton in June 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar homes in South Normanton with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 23 November 2096. Taking into account 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including costs.