Chances are that if you own a flat in Neston you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Neston,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Neston valuers.
After lengthy correspondence with the landlord of her studio apartment in Neston, Millie started the lease extension process as the 80 year mark was quickly coming. The legal work completed in November 2014. The landlord’s charges were kept to an absolute minimum.
In 2014 we were approached by Dr Hannah Robinson who, having moved into a ground floor flat in Neston in October 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Neston with an extended lease were worth £181,600. The average ground rent payable was £55 invoiced per annum. The lease terminated on 1 April 2077. Given that there were 52 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
Last January we were e-mailed by Mr and Mrs. P Michel , who moved into a newly refurbished apartment in Neston in February 1996. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparative properties in Neston with a long lease were valued about £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired in 2097. Taking into account 72 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.