On the balance of probabilities if you own a flat in Nannerch you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
---|---|
Chelsea 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. |
Coventry Building Society | 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. |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Nannerch leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her basement apartment in Nannerch, Madeleine commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work completed in January 2005. The landlord’s charges were restricted to approximately 550 GBP.
In 2010 we were approached by Dr Jude Parker who, having acquired a studio flat in Nannerch in November 2001. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Nannerch with a long lease were in the region of £208,600. The average amount of ground rent was £60 billed quarterly. The lease finished in 2081. Given that there were 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.
In 2014 we were contacted by Ms L Mitchell who, having owned a first floor flat in Nannerch in July 2009. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical residencies in Nannerch with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out in 2101. Given that there were 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.