As the the remaining lease term of a Nafferton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Nafferton will qualify for this right; however a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Nafferton with more than one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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; |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service will provide you increased control over the value of your Nafferton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her studio apartment in Nafferton, Phoebe commenced the lease extension process as the eighty year deadline was rapidly coming. The transaction was concluded in March 2011. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. E Morel who, having acquired a studio apartment in Nafferton in January 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Nafferton with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed annually. The lease expiry date was in 2098. Considering the 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Dr Milo Young moved into a ground floor flat in Nafferton in July 2012. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical premises in Nafferton with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 billed annually. The lease concluded in 2078. Taking into account 53 years left we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.