Nechells leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Nechells will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Nechells with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Nechells can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Nechells 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 lengthy discussions with the freeholder of her basement apartment in Nechells, Sian initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction was concluded in July 2011. The landlord’s fees were restricted to less than 700 pounds.
Mr Ben Taylor acquired a purpose-built flat in Nechells in May 2007. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Nechells with a long lease were worth £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease terminated in 2085. Considering the 59 years remaining we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Mrs Rosie Reed purchased a garden flat in Nechells in February 2008. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable homes in Nechells with a long lease were worth £250,000. The average amount of ground rent was £50 collected per annum. The lease finished in 2096. Considering the 70 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.