Top reasons for Nettleham lease extension

Top reasons for lease extension now:

A Nettleham lease depreciates with the years remaining on the lease.

The value of Nettleham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years

Nettleham property with a lease extension has roughly the same value as a freehold

Leasehold properties in Nettleham with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may not finance a property on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Nettleham lease extension solicitors or enfranchisement solicitors

Using our service gives you better control over the value of your Nettleham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Nettleham Lease Extension Case Summaries:

Ethan, Nettleham, Lincolnshire,

Ethan owned a high value flat in Nettleham on the market with a lease of a little over 61 years outstanding. Ethan on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.

Nettleham case:

Dr L Wilson bought a purpose-built flat in Nettleham in June 2000. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable premises in Nettleham with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded on 12 January 2094. Taking into account 69 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Nettleham case:

In 2012 we were called by Mrs G Rose who, having moved into a basement flat in Nettleham in April 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Nettleham with 100 year plus lease were worth £290,000. The average ground rent payable was £60 collected yearly. The lease concluded in 2105. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.