Neston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Neston tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Neston you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Neston leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Yorkshire Building Society |
Irrespective 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 in-depth market knowledge and the close ties they enjoy with Neston valuers.
Hugo was the the leasehold owner of a studio flat in Neston on the market with a lease of fraction over 72 years left. Hugo informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were called by Mr Michael Simon who, having was assigned a lease of a basement apartment in Neston in March 2011. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Neston with a long lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2088. Having 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including legals.
In 2012 we were approached by Mr V Green who, having bought a first floor flat in Neston in October 2002. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Neston with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2077. Considering the 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.