Nafferton residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Nafferton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Nafferton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Nafferton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Alexander, came dangerously close to the eighty-year threshold with the lease on his first floor apartment in Nafferton. In buying his property 19 years previously, the unexpired term was of minimal interest. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Alexander extended the lease just under the wire in March. Alexander and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had dipped below 80 years, the sum would have escalated by a minimum £1,025.
Last Winter we were approach by Mrs Lucy Sánchez , who completed a studio apartment in Nafferton in March 2007. The question was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Nafferton with 100 year plus lease were valued around £166,400. The average amount of ground rent was £60 billed per annum. The lease terminated on 26 May 2079. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.
Mr and Mrs. W Miller completed a basement flat in Nafferton in August 2010. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Nafferton with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected quarterly. The lease lapsed on 7 May 2090. Having 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.