Nayland 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 your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Nayland residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Nayland you must check if your lease has between 70 and ninety years left. There are compelling reasons why a Nayland leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Nayland with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Nayland,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 experience and the close ties they enjoy with Nayland valuers.
Liam was the the leasehold proprietor of a studio apartment in Nayland being marketed with a lease of fraction over fifty eight years left. Liam on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last October we were contacted by Mr and Mrs. T Young , who owned a one bedroom flat in Nayland in February 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar residencies in Nayland with 100 year plus lease were worth £168,800. The average ground rent payable was £60 billed annually. The lease terminated in 2081. Given that there were 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.
Mr and Mrs. S Mitchell took over the lease of a newly refurbished flat in Nayland in November 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Nayland with a long lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2092. Having 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.