The re-sale value of a leasehold property in Nafferton depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed well before the eighty year mark. Statute enables Nafferton qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Nafferton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Teddy was the the leasehold proprietor of a conversion apartment in Nafferton being sold with a lease of a little over 72 years outstanding. Teddy informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Summer we were contacted by Dr Leon Nguyen , who took over the lease of a recently refurbished flat in Nafferton in January 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Nafferton with an extended lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated in 2098. Taking into account 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Ms L Leroy moved into a studio apartment in Nafferton in July 2003. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Nafferton with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2078. Considering the 54 years remaining we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.