Nantwich 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 becomes more expensive. Most owners of residential leasehold property in Nantwich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Nantwich you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Nantwich,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 experience and the close ties they enjoy with Nantwich valuers.
Owen was the the leasehold proprietor of a high value flat in Nantwich on the market with a lease of a little over 61 years outstanding. Owen on an informal basis approached 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 initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were phoned by Mrs E Martin who, having owned a newly refurbished flat in Nantwich in October 2004. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical residencies in Nantwich with a long lease were in the region of £260,200. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 18 January 2092. Considering the 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.
Mr and Mrs. G Jones bought a one bedroom flat in Nantwich in October 2011. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Nantwich with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected annually. The lease elapsed in 2081. Taking into account 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.