The nearer a residential lease in South Normanton gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in South Normanton will qualify for this right; nevertheless a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property 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 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; |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 get 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 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.
David was the the leasehold proprietor of a studio flat in South Normanton on the market with a lease of just over sixty years remaining. David informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2013 we were phoned by Mr U Garcia who, having took over the lease of a basement apartment in South Normanton in April 1995. 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 homes in South Normanton with a long lease were worth £256,600. The average ground rent payable was £60 collected annually. The lease finished on 23 February 2077. Having 52 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 plus costs.
In 2011 we were e-mailed by Mr M Anderson who, having purchased a first floor flat in South Normanton in August 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical flats in South Normanton with a long lease were in the region of £218,000. The average ground rent payable was £45 billed annually. The lease elapsed on 24 July 2088. Given that there were 63 years left we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus legals.