The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Neston can extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Neston lease extension. Shelving that expense today simply increases the amount you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Neston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neston valuers.
In the wake of 9 months of protracted negotiations with the freeholder of her basement flat in Neston, Tia commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension completed in July 2010. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. D Moore was assigned a lease of a recently refurbished apartment in Neston in November 2005. The question was if we could approximate the price would be for a ninety year lease extension. Identical premises in Neston with 100 year plus lease were valued about £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2088. Having 63 years left we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.
Dr Alexander Murphy took over the lease of a garden apartment in Neston in May 2005. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar residencies in Neston with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2077. Considering the 52 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.