The re-sale value of a leasehold property in Nannerch depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year mark. Current legislation enables Nannerch qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 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 in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Nannerch can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Nannerch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim owned a 2 bedroom apartment in Nannerch being marketed with a lease of just over 59 years outstanding. Ibrahim on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last year we were called by Mr and Mrs. C Williams , who owned a recently refurbished flat in Nannerch in May 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Nannerch with an extended lease were worth £171,800. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2075. Given that there were 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.
In 2011 we were phoned by Dr Natalie Cox who, having was assigned a lease of a basement flat in Nannerch in February 2008. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar flats in Nannerch with a long lease were valued about £280,000. The average ground rent payable was £45 collected annually. The lease finished on 28 September 2095. Given that there were 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.