Why you should start your Nafferton lease extension

Main reasons to commence your Nafferton lease extension today:

A Nafferton lease depreciates with the years remaining on the lease.

Nafferton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Nafferton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Nafferton you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Nafferton property with a lease extension is almost the same value as a freehold

Leasehold properties 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not loan monies with a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years suitable security. In addition to this being important when selling, it is also relevant if you are intending to refinance your Nafferton home.

What makes us experts in Nafferton lease extensions?

Regardless of whether you are a tenant or a freeholder in Nafferton,the lease extension experts 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.

Nafferton Lease Extension Case Summaries:

Oscar, Nafferton, East Yorkshire

Half a year ago Oscar, came very close to the 80-year threshold with the lease on his ground floor apartment in Nafferton. Having bought his home 18 years previously, the unexpired term was of little interest. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Oscar extended the lease at the eleventh hour last September. Oscar and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by at least £875.

Nafferton case:

Last Winter we were phoned by Mr and Mrs. S Hall , who purchased a one bedroom flat in Nafferton in March 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Nafferton with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced annually. The lease expired on 17 May 2085. Considering the 59 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.

Nafferton case:

In 2010 we were contacted by Mrs Stephanie Brooks who, having owned a basement flat in Nafferton in July 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Nafferton with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2096. Taking into account 70 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.