Neston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Neston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Neston you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Neston valuers.
Last year Sam, came very close to the 80-year mark with the lease on his purpose- built apartment in Neston. In buying his flat 19 years ago, the length of the lease was of no bearing. Fortunately, he became aware that he needed to take action soon on a lease extension. Sam arranged for a lease extension just under the wire last August. Sam and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £1,025.
Last year we were called by Mr and Mrs. J Miller , who owned a basement apartment in Neston in March 2010. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Neston with 100 year plus lease were valued around £189,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired on 20 February 2079. Taking into account 53 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
Mr and Mrs. L Bailey took over the lease of a purpose-built flat in Neston in November 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Neston with a long lease were valued around £290,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed on 12 October 2099. Taking into account 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.