Nafferton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Nafferton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Nafferton you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Nafferton can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Nafferton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her leasehold flat in Nafferton, Samantha commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was concluded in February 2012. The freeholder’s fees were restricted to less than 600 GBP.
Mr and Mrs. S Gunderson moved into a first floor flat in Nafferton in April 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative residencies in Nafferton with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended in 2094. Taking into account 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last month we were approach by Mr and Mrs. I Ricardo , who bought a first floor apartment in Nafferton in March 2000. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Nafferton with an extended lease were worth £285,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated on 9 August 2105. Given that there were 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.