Unfortunately that a Nayland residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Nayland property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. Most leasehold owners in Nayland will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Nayland with over one hundred years remaining on the lease are sometimes 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 service charges justify 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. |
| Bank of 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Nayland can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Nayland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her leasehold apartment in Nayland, Alice initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension completed in May 2005. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Dr Daniel Mason who, having purchased a first floor apartment in Nayland in September 1998. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative properties in Nayland with 100 year plus lease were valued around £183,600. The average ground rent payable was £65 billed annually. The lease elapsed on 17 July 2083. Having 57 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2011 we were approached by Mr M Michel who, having bought a studio apartment in Nayland in June 1995. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Nayland with 100 year plus lease were worth £245,000. The mid-range amount of ground rent was £45 collected annually. The lease expired on 9 March 2094. Taking into account 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.