Nannerch leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Nannerch residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Nannerch you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Nannerch,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nannerch valuers.
In 2014 Liam, started to get close to the 80-year threshold with the lease on his leasehold flat in Nannerch. In buying his property two decades ago, the unexpired term was of minimal interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Liam extended the lease just under the wire last May. Liam and the freeholder in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,150.
In 2014 we were phoned by Mr and Mrs. L François who, having owned a one bedroom flat in Nannerch in February 2011. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable residencies in Nannerch with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 4 August 2087. Considering the 62 years outstanding we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.
Last Summer we were approach by Mr Kai Anderson , who completed a studio flat in Nannerch in March 2006. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Nannerch with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded on 15 June 2076. Considering the 51 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.