The closer a residential lease in Nannerch gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Nannerch will meet the qualifying criteria; however a lawyer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Nannerch leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Tyler, started to get close to the eighty-year threshold with the lease on his first floor apartment in Nannerch. In buying his property two decades ago, the unexpired term was of little importance. Thankfully, he recognised he needed to take steps soon on a lease extension. Tyler was able to extend his lease just ahead of time last June. Tyler and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had gone lower than eighty years, the amount would have increased by a minimum £925.
In 2010 we were contacted by Dr T Moore who, having acquired a basement apartment in Nannerch in November 2003. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical residencies in Nannerch with 100 year plus lease were valued around £223,400. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2085. Having 59 years remaining we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.
Mr and Mrs. T King was assigned a lease of a basement flat in Nannerch in March 2007. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative residencies in Nannerch with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected per annum. The lease termination date was in 2105. Given that there were 79 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.