Neston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Neston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Neston you must check if your lease has between 70 and ninety years left. There are good reasons why a Neston flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Neston leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Joshua, came dangerously close to the eighty-year threshold with the lease on his basement flat in Neston. Having bought his flat two decades ago, the unexpired term was of no relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Joshua extended the lease at the eleventh hour in May. Joshua and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had slid below eighty years, the price would have become more exhorbitant by at least £875.
Last month we were approach by Dr Natasha Mercier , who was assigned a lease of a one bedroom apartment in Neston in April 2005. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Neston with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expired in 2100. Having 74 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Last Autumn we were contacted by Mr and Mrs. K Peterson , who acquired a garden apartment in Neston in October 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Neston with an extended lease were valued around £243,000. The mid-range ground rent payable was £65 billed yearly. The lease came to a finish on 18 April 2089. Having 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.