Neston leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Neston will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers 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.
Off the back of unsuccessful correspondence with the freeholder of her first floor apartment in Neston, Paige initiated the lease extension process as the eighty year threshold was fast approaching. The transaction was concluded in July 2007. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mrs Yasmin King who, having purchased a ground floor apartment in Neston in May 2005. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical flats in Neston with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 20 September 2092. Given that there were 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.
Last Spring we were phoned by Mr L Jackson , who took over the lease of a ground floor flat in Neston in October 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Neston with an extended lease were worth £206,200. The average ground rent payable was £55 invoiced yearly. The lease ended in 2081. Taking into account 56 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.