Unfortunately that a Neston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Neston property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Neston will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| TSB |
The conveyancers that we work with procure Neston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Toby, came seriously close to the 80-year mark with the lease on his one bedroom flat in Neston. In buying his flat twenty years ago, the lease term was of no importance. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Toby extended the lease just in the nick of time in September. Toby and the landlord eventually agreed on a premium of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,150.
In 2012 we were approached by Mr G Khan who, having owned a newly refurbished apartment in Neston in October 2008. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative residencies in Neston with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 3 February 2076. Considering the 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
Mrs G King completed a one bedroom flat in Neston in September 2004. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical premises in Neston with a long lease were valued about £280,000. The average ground rent payable was £45 billed monthly. The lease end date was in 2096. Taking into account 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.