It’s a harsh certainty that a Nannerch residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Nannerch property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Nannerch will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Nannerch with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers 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.
18 months ago John, came dangerously near to the 80-year threshold with the lease on his ground floor flat in Nannerch. In buying his home 19 years ago, the lease term was of little interest. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. John was able to extend his lease just ahead of time in September. John and the freeholder via the management company ultimately settled on an amount of £6,000 . If the lease had fallen below 80 years, the sum would have increased by a minimum £1,000.
Dr K Evans owned a basement flat in Nannerch in July 2006. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Nannerch with an extended lease were valued about £205,000. The average ground rent payable was £50 billed monthly. The lease finished in 2104. Considering the 78 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Dr C Parker moved into a basement apartment in Nannerch in March 2009. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar flats in Nannerch with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2093. Having 67 years remaining we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus costs.