The market value of a leasehold property in Nafferton is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the 80 year mark. Current legislation entitles Nafferton qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Nafferton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Joseph was the the leasehold proprietor of a 2 bedroom apartment in Nafferton being sold with a lease of fraction over sixty years left. Joseph on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Ms Chloe Adams acquired a ground floor flat in Nafferton in February 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Nafferton with a long lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded in 2093. Taking into account 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.
Last year we were contacted by Dr Y Ramírez , who bought a first floor flat in Nafferton in June 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Identical properties in Nafferton with a long lease were valued around £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed on 26 May 2104. Given that there were 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.