As the the remaining lease term of a Nafferton domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Nafferton will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Nafferton with over one hundred 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| Halifax | Minimum 70 years from the date 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. |
The lawyers that we work with procure Nafferton 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.
Last October Joseph, started to get close to the 80-year mark with the lease on his ground floor apartment in Nafferton. In buying his flat two decades ago, the unexpired term was of little concern. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Joseph extended the lease at the eleventh hour last March. Joseph and the landlord eventually agreed on an amount of £5,500 . If the lease had descended to less than 80 years, the figure would have escalated by a minimum £1,150.
Mr and Mrs. G Ali completed a first floor flat in Nafferton in August 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Nafferton with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected every twelve months. The lease expired in 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus costs.
Last Summer we were e-mailed by Mr and Mrs. C Ramírez , who moved into a basement flat in Nafferton in August 2003. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Nafferton with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 collected yearly. The lease terminated in 2090. Having 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus professional charges.