The re-sale value of a leasehold property in Neston depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year cut off point. Statute entitles Neston qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Neston can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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.
Oliver owned a high value apartment in Neston on the market with a lease of a few days over 61 years outstanding. Oliver on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2014 we were contacted by Mr and Mrs. F André who, having bought a studio apartment in Neston in January 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical properties in Neston with a long lease were worth £184,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2077. Considering the 53 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
In 2011 we were called by Mr and Mrs. E Ramírez who, having was assigned a lease of a ground floor apartment in Neston in January 2000. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable residencies in Neston with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease terminated in 2097. Having 73 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.