Unfortunately that a Nannerch residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Nannerch property market.Where your lease has approximately ninety years left, you need to 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 slips lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Nannerch will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Nannerch with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 undertake 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.
Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in Nannerch, Lydia started the lease extension process as the eighty year deadline was fast approaching. The lease extension completed in March 2005. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were contacted by Dr L Morgan , who bought a one bedroom apartment in Nannerch in June 2012. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Nannerch with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 collected monthly. The lease elapsed in 2082. Given that there were 56 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.
In 2014 we were contacted by Dr S Flores who, having was assigned a lease of a newly refurbished apartment in Nannerch in November 2008. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable premises in Nannerch with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 5 May 2102. Taking into account 76 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.