Navenby leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Navenby will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Navenby with over 100 years unexpired 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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; |
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Navenby,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Navenby valuers.
Following protracted discussions with the freeholder of her garden apartment in Navenby, Katherine commenced the lease extension process as the 80 year mark was rapidly advancing. The legal work was finalised in January 2009. The landlord’s costs were negotiated to about 500 GBP.
In 2013 we were contacted by Ms Millie Clarke who, having was assigned a lease of a one bedroom flat in Navenby in May 2004. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Navenby with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2077. Given that there were 52 years outstanding we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including costs.
Dr H Thomas purchased a studio flat in Navenby in March 2011. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Navenby with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected monthly. The lease lapsed on 17 June 2097. Considering the 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of expenses.