Nannerch leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Nannerch will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Nannerch with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with procure Nannerch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Blake was the the leasehold proprietor of a conversion apartment in Nannerch being marketed with a lease of a few days over 59 years left. Blake on an informal basis contacted his landlord being a well known London-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 £100 yearly. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were e-mailed by Mr D David who, having acquired a purpose-built apartment in Nannerch in November 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Nannerch with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed in 2077. Given that there were 51 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.
In 2014 we were contacted by Dr F Wilson who, having completed a garden flat in Nannerch in April 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Nannerch with a long lease were valued about £285,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated in 2097. Considering the 71 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.