Nantwich leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Nantwich tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Nantwich you should check if your lease has between seventy and ninety years remaining. There are good reasons why a Nantwich flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a freeholder in Nantwich,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nantwich valuers.
Harrison was the the leasehold owner of a studio flat in Nantwich being sold with a lease of a little over 72 years outstanding. Harrison informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Joshua Howard moved into a studio apartment in Nantwich in September 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar premises in Nantwich with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed quarterly. The lease finished in 2076. Having 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.
In 2009 we were phoned by Mrs Abigail Robinson who, having acquired a ground floor flat in Nantwich in June 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Nantwich with a long lease were valued around £280,000. The mid-range ground rent payable was £45 billed monthly. The lease ended on 1 November 2096. Given that there were 70 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.