Navenby leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Navenby residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Navenby you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Half a year ago Lucas, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Navenby. In buying his flat 18 years ago, the lease term was of minimal importance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Lucas was able to extend his lease just ahead of time last January. Lucas and the landlord in the end settled on the final figure of £6,000 . If the lease had slid to less than eighty years, the amount would have escalated by a minimum £1,025.
Ms Courtney Baker was assigned a lease of a ground floor flat in Navenby in October 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar premises in Navenby with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 billed annually. The lease termination date was on 10 August 2096. Taking into account 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Mr and Mrs. P Ward took over the lease of a recently refurbished apartment in Navenby in February 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Navenby with a long lease were worth £218,400. The average ground rent payable was £60 collected per annum. The lease finished in 2085. Taking into account 59 years left we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.