Nether Stowey leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Nether Stowey will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Two years ago Jude, started to get close to the 80-year threshold with the lease on his basement flat in Nether Stowey. Having bought his flat twenty years previously, the length of the lease was of minimal significance. Thankfully, he realised he needed to take action soon on a lease extension. Jude extended the lease just under the wire in May. Jude and the landlord who owned the flat above eventually settled on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,025.
Dr Felix Davis moved into a studio flat in Nether Stowey in June 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical properties in Nether Stowey with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease finished on 21 March 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including professional charges.
In 2009 we were contacted by Mrs Paige Gunderson who, having bought a first floor flat in Nether Stowey in February 2007. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Similar homes in Nether Stowey with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 16 November 2079. Having 53 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.