The market value of Nannerch leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than eighty years
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Nannerch,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nannerch valuers.
Noah owned a 2 bedroom apartment in Nannerch on the market with a lease of a little over 61 years remaining. Noah informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were phoned by Mr Alex Bernard who, having was assigned a lease of a first floor flat in Nannerch in February 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Nannerch with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2098. Considering the 72 years left we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.
Last Winter we were approach by Mr Alex François , who moved into a studio apartment in Nannerch in October 2011. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Nannerch with a long lease were valued about £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease ran out in 2087. Given that there were 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.