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. It is the case that most Neston tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Neston you must investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Neston leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle 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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her one bedroom flat in Neston, Sian commenced the lease extension process as the eighty year threshold was swiftly coming. The lease extension was concluded in November 2006. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. Y González took over the lease of a garden flat in Neston in July 2006. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Neston with a long lease were in the region of £216,000. The average ground rent payable was £60 billed quarterly. The lease ran out in 2083. Having 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Dr S Stewart was assigned a lease of a purpose-built flat in Neston in April 2012. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparative residencies in Neston with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2103. Given that there were 78 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.