Nafferton leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Nafferton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Nafferton with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle Nafferton 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.
Caleb was the the leasehold proprietor of a 2 bedroom apartment in Nafferton on the market with a lease of a few days over fifty eight years remaining. Caleb informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last month we were phoned by Mr Kyle Dupont , who owned a ground floor flat in Nafferton in September 1999. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Nafferton with a long lease were in the region of £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 1 July 2092. Having 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Autumn we were called by Dr Y Fournier , who took over the lease of a newly refurbished flat in Nafferton in July 2003. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Nafferton with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ended in 2103. Given that there were 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.