Navenby 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 gets more expensive. Most owners of residential leasehold property in Navenby enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Navenby you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Navenby flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Navenby with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | 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. |
| 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 |
The lawyers that we work with undertake Navenby 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 conveyancing solicitor we work with provide it.
Last year Ali, started to get close to the eighty-year threshold with the lease on his leasehold flat in Navenby. In buying his home two decades ago, the lease term was of little importance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Ali extended the lease just under the wire in January. Ali and the landlord ultimately agreed on an amount of £5,500 . If the lease had gone below 80 years, the premium would have increased by a minimum £1,025.
In 2009 we were e-mailed by Ms Rebecca Jones who, having completed a studio flat in Navenby in July 2011. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable residencies in Navenby with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.
Mrs T Vincent completed a purpose-built apartment in Navenby in November 2001. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar premises in Navenby with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 collected yearly. The lease elapsed in 2097. Considering the 71 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.