Nelson residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Nelson with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Nelson leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a studio apartment in Nelson on the market with a lease of fraction over 72 years left. Jason on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last month we were contacted by Dr I Dupont , who completed a ground floor flat in Nelson in July 2004. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Nelson with a long lease were in the region of £250,400. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 9 July 2089. Taking into account 64 years left we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of professional charges.
Last Spring we were e-mailed by Mr and Mrs. R Mercier , who was assigned a lease of a one bedroom apartment in Nelson in June 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar premises in Nelson with an extended lease were worth £184,000. The average ground rent payable was £55 invoiced per annum. The lease expired in 2078. Taking into account 53 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.