When it comes to long leasehold property in Neston, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Neston with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Neston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Neston valuers.
Connor owned a high value flat in Neston on the market with a lease of fraction over 59 years outstanding. Connor on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were approached by Dr John Martin who, having purchased a ground floor apartment in Neston in July 1999. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Neston with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out in 2096. Taking into account 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2010 we were phoned by Mr and Mrs. Y Girard who, having bought a one bedroom flat in Neston in July 1998. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar properties in Neston with a long lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed on 24 February 2085. Given that there were 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including professional charges.