Nether Stowey leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Nether Stowey will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Nether Stowey can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Nether Stowey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey owned a 2 bedroom flat in Nether Stowey on the market with a lease of just over fifty eight years left. Harvey on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were called by Dr Freddie White , who moved into a ground floor flat in Nether Stowey in November 2001. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Nether Stowey with a long lease were valued around £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease expired on 11 May 2083. Considering the 57 years left we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.
Last August we were contacted by Dr Joshua Gray , who bought a one bedroom apartment in Nether Stowey in November 2003. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Nether Stowey with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2103. Having 77 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.