Unfortunately that a Nether Stowey residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Nether Stowey property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. The majority of flat owners in Nether Stowey will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancers that we work with handle Nether Stowey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Edward, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Nether Stowey. In buying his home two decades ago, the lease term was of minimal significance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Edward arranged for a lease extension just in the nick of time last August. Edward and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £1,075.
Mr and Mrs. B Young moved into a recently refurbished flat in Nether Stowey in November 1996. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative residencies in Nether Stowey with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2078. Having 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Dr H Dupont took over the lease of a studio flat in Nether Stowey in July 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Nether Stowey with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished in 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.