Neston residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Neston with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Neston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neston valuers.
Following unsuccessful correspondence with the landlord of her one bedroom apartment in Neston, Phoebe initiated the lease extension process as the eighty year deadline was fast approaching. The lease extension was concluded in January 2010. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr Jacob Johnson who, having was assigned a lease of a first floor flat in Neston in March 1995. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical homes in Neston with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 billed monthly. The lease lapsed on 18 August 2094. Having 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Last year we were called by Mr and Mrs. V Hernández , who moved into a basement flat in Neston in February 1999. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable premises in Neston with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 collected annually. The lease ran out in 2083. Given that there were 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus legals.