The re-sale value of a leasehold property in Nelson depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year threshold. Statute enables Nelson qualifying lessees to an additional term of 90 years over and above the unexpired term, at a notional rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Nelson with more than 100 years left on the lease are often referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Nelson,the lease extension solicitors 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 Nelson valuers.
After protracted correspondence with the landlord of her purpose-built flat in Nelson, Millie commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work completed in April 2005. The landlord’s fees were restricted to less than 650 pounds.
Last September we were phoned by Mr F Wood , who owned a recently refurbished apartment in Nelson in October 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Nelson with a long lease were in the region of £295,000. The average ground rent payable was £45 collected yearly. The lease finished in 2100. Given that there were 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Dr L Gray was assigned a lease of a studio apartment in Nelson in October 2007. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative residencies in Nelson with an extended lease were in the region of £243,000. The average ground rent payable was £65 invoiced yearly. The lease ended on 12 July 2089. Given that there were 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.