When it comes to residential leasehold premises in Neston, you are actually buying an entitlement to reside 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 should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Neston with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current statute the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Neston can be a difficult process. We recommend you obtain professional help from a conveyancer 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 procuring Neston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Gabriel, started to get close to the eighty-year threshold with the lease on his first floor flat in Neston. In buying his property 18 years ago, the length of the lease was of minimal relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Gabriel arranged for a lease extension at the eleventh hour last July. Gabriel and the freeholder subsequently settled on sum of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,150.
In 2010 we were contacted by Mr and Mrs. F Mason who, having was assigned a lease of a garden apartment in Neston in February 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Neston with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 25 November 2090. Considering the 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of costs.
Ms Erin Lefèvre acquired a basement apartment in Neston in November 2012. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar homes in Neston with a long lease were worth £189,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 4 June 2079. Having 53 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.