Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Nantwich. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Nantwich have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Nantwich lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Nantwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Joshua, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Nantwich. Having purchased his flat 19 years previously, the unexpired term was of no bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Joshua arranged for a lease extension at the eleventh hour in September. Joshua and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £1,150.
In 2014 we were contacted by Mrs Jordan Rogers who, having completed a ground floor apartment in Nantwich in August 2010. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Nantwich with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2094. Having 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr and Mrs. R González acquired a studio apartment in Nantwich in September 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Nantwich with a long lease were valued around £216,000. The average ground rent payable was £60 collected monthly. The lease concluded in 2083. Having 58 years unexpired we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.