Nunhead Lease Extension - Free Consultation

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Main reasons to start your Nunhead lease extension


Top reasons for lease extension now:

Increase your lease and increase your Nunhead property value

Chances are that if you own a flat in Nunhead you actually own a long leasehold interest over your property

Nunhead property with a lease extension has roughly the same value as a freehold

Leasehold properties in Nunhead with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to loan monies with a short lease

Banks and Building Societies have specific criteria when loaning monies secured on leasehold homes. Many will simply refrain from lending at all once the residual lease term goes lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to refinance your Nunhead home.

Lender Requirement
Accord Mortgages 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.
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.
Halifax Minimum 70 years from the date of the mortgage.

Why use us for your lease extension in Nunhead?

Retaining our service will provide you increased control over the value of your Nunhead leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Nunhead Lease Extension Case Summaries:

Liam, Nunhead, South East London,

Liam owned a high value apartment in Nunhead being sold with a lease of fraction over sixty years unexpired. Liam informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

Nunhead case:

In 2010 we were phoned by Dr Toby González who, having bought a purpose-built flat in Nunhead in January 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar flats in Nunhead with a long lease were worth £210,600. The mid-range ground rent payable was £45 collected yearly. The lease finished in 2087. Having 62 years unexpired we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.

Decision in Lewisham

An example of a Freehold Enfranchisement matter before the tribunal for a Nunhead flat is 41 Endwell Road in March 2013. this matter relateed to the acquisition of the freehold of a mid- terraced Victorian house converted into three separate self-contained dwellings. By an order dated 28/11/2012, Deputy District Judge Cole in the Bromley County Court held that the leaseholders were entitled to acquire the freehold and directed that the premium payable be determined by this Tribunal. The Tribunal assessed the premium to be £14,753 This case was in relation to 3 flats. The number of years remaining on the existing lease(s) was 80.01 years.