As the length of the unexpired term of a Nelson domestic lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Nelson will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Nelson can be a difficult process. We recommend you procure guidance 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 in-depth market knowledge dealing with Nelson lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the landlord of her one bedroom flat in Nelson, Nicole commenced the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was finalised in June 2015. The freeholder’s fees were restricted to about 550 pounds.
Last Spring we were approach by Mrs Emma Young , who completed a first floor flat in Nelson in September 2000. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative properties in Nelson with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 10 February 2103. Taking into account 77 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Last April we were approach by Mr Alfie Martínez , who owned a garden flat in Nelson in April 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable flats in Nelson with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease elapsed in 2092. Considering the 66 years left we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of fees.