There is no doubt about it a leasehold flat or house in Nunhead is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Nunhead will qualify for this right; however a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Nunhead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nunhead valuers.
Toby owned a 2 bedroom apartment in Nunhead on the market with a lease of fraction over 59 years outstanding. Toby informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. J Mason moved into a basement flat in Nunhead in August 1996. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar premises in Nunhead with an extended lease were valued around £193,400. The average amount of ground rent was £65 billed quarterly. The lease expiry date was on 6 August 2083. Having 59 years outstanding we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
An example of a Freehold Enfranchisement decision 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 affected 3 flats. The number of years remaining on the existing lease(s) was 80.01 years.