There is no doubt about it a leasehold flat or house in Nafferton is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Nafferton will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Nafferton with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Nafferton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 procuring Nafferton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her ground floor apartment in Nafferton, Katherine commenced the lease extension process as the eighty year mark was swiftly nearing. The lease extension was finalised in October 2009. The landlord’s charges were negotiated to about five hundred GBP.
In 2014 we were contacted by Mrs Morgan Morris who, having purchased a garden apartment in Nafferton in November 2011. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Nafferton with an extended lease were worth £256,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated on 20 April 2078. Taking into account 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.
Last Autumn we were called by Mr and Mrs. M Vincent , who took over the lease of a one bedroom flat in Nafferton in November 1997. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Nafferton with a long lease were valued about £218,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded in 2089. Taking into account 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus fees.