The market value of Neston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Neston with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Neston can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring Neston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her one bedroom apartment in Neston, Kayleigh started the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was concluded in August 2007. The freeholder’s fees were restricted to less than four hundred pounds.
In 2012 we were approached by Mr and Mrs. J Rodríguez who, having acquired a one bedroom apartment in Neston in January 2010. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar residencies in Neston with an extended lease were in the region of £174,200. The average amount of ground rent was £55 billed annually. The lease ended in 2077. Having 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
In 2013 we were e-mailed by Ms B Wright who, having completed a one bedroom flat in Neston in August 2010. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable premises in Neston with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 invoiced yearly. The lease ran out on 17 October 2097. Having 71 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.