It’s an underpublicised certainty that a Nantwich residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Nantwich property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Nantwich will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Nantwich can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience dealing with Nantwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb was the the leasehold owner of a 2 bedroom apartment in Nantwich being sold with a lease of a few days over fifty eight years left. Caleb on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Christmas we were called by Mr and Mrs. F Girard , who owned a garden flat in Nantwich in April 2005. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable residencies in Nantwich with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease termination date was in 2077. Given that there were 52 years left we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2012 we were approached by Dr Rory Nelson who, having completed a one bedroom apartment in Nantwich in January 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Nantwich with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2097. Given that there were 72 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.