With a long leasehold premises in Nannerch, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Nannerch with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Nannerch with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Nannerch leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her garden flat in Nannerch, Gemma commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in May 2014. The freeholder’s costs were kept to an absolute minimum.
Mr Max James acquired a garden apartment in Nannerch in June 2001. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparable premises in Nannerch with a long lease were worth £216,000. The average ground rent payable was £60 invoiced yearly. The lease expiry date was on 28 January 2083. Taking into account 58 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.
Last Autumn we were called by Mr and Mrs. V King , who bought a purpose-built apartment in Nannerch in July 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Nannerch with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease termination date was on 18 November 2103. Taking into account 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.