On the balance of probabilities where you own a flat in Neston you actually own a long leasehold interest over your property
Leasehold residencies in Neston with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | 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. |
Lease extensions in Neston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 a wealth of experience dealing with Neston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a conversion flat in Neston being sold with a lease of fraction over 61 years remaining. Harry on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were approached by Dr T Martínez who, having completed a one bedroom flat in Neston in February 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Neston with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 16 October 2099. Taking into account 74 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2011 we were contacted by Mr and Mrs. V Ramírez who, having bought a basement apartment in Neston in August 1997. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable properties in Neston with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2088. Having 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.