Nechells residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Nechells,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 Nechells valuers.
Last October Alex, came very near to the 80-year mark with the lease on his purpose- built apartment in Nechells. Having bought his home 18 years ago, the length of the lease was of little significance. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Alex was able to extend his lease at the eleventh hour in July. Alex and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If he not met the deadline, the price would have escalated by at least £1,150.
Last month we were phoned by Ms Ellen David , who acquired a ground floor flat in Nechells in September 2003. The question was if we could estimate the price would be for a ninety year lease extension. Comparable flats in Nechells with a long lease were in the region of £183,600. The average ground rent payable was £65 billed per annum. The lease elapsed on 8 May 2082. Given that there were 57 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.
Last Summer we were e-mailed by Mr and Mrs. O Wright , who moved into a one bedroom flat in Nechells in October 1998. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative residencies in Nechells with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished on 8 July 2093. Given that there were 68 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.