Nelson leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Nelson residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Nelson you really ought to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Nelson flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Nelson with over 100 years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Nelson can be a difficult process. We recommend you obtain professional help from a conveyancer 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 procuring Nelson lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Jake, started to get close to the 80-year threshold with the lease on his garden flat in Nelson. In buying his home 18 years ago, the lease term was of no interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Jake extended the lease just ahead of time last September. Jake and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If the lease had descended to less than 80 years, the price would have increased by at least £875.
In 2012 we were approached by Dr Tommy Rodríguez who, having moved into a basement apartment in Nelson in May 2007. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Nelson with an extended lease were valued around £275,000. The average amount of ground rent was £45 invoiced monthly. The lease came to a finish on 9 February 2094. Taking into account 69 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last month we were phoned by Mr and Mrs. J Laurent , who bought a garden flat in Nelson in August 1995. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable residencies in Nelson with an extended lease were worth £216,000. The average ground rent payable was £60 invoiced annually. The lease lapsed in 2083. Having 58 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.