With a domestic leasehold premises in Nafferton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Nafferton with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Nafferton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nafferton valuers.
Subsequent to protracted discussions with the freeholder of her ground floor apartment in Nafferton, Phoebe started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was concluded in July 2009. The landlord’s costs were restricted to approximately 650 GBP.
In 2010 we were contacted by Mr Arthur Baker who, having owned a basement apartment in Nafferton in August 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable properties in Nafferton with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease expiry date was on 8 March 2091. Taking into account 66 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Dr E Girard acquired a newly refurbished apartment in Nafferton in June 2008. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Nafferton with a long lease were valued around £275,000. The average ground rent payable was £55 collected annually. The lease finished in 2102. Given that there were 77 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.