Unfortunately that a Nafferton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Nafferton property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Nafferton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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 are not acceptable. 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. |
| Godiva Mortgages | 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Nafferton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nafferton valuers.
Tommy owned a conversion apartment in Nafferton on the market with a lease of fraction over 59 years outstanding. Tommy informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were approached by Mr Jamie Laurent who, having was assigned a lease of a ground floor apartment in Nafferton in April 2007. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative homes in Nafferton with an extended lease were valued around £225,400. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2090. Considering the 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.
In 2009 we were called by Dr N Sharif who, having was assigned a lease of a studio apartment in Nafferton in March 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Nafferton with a long lease were worth £270,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 2 November 2101. Having 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.