Chances are that where you own a flat in Nettleham you actually own a long leasehold interest over your property
Leasehold properties in Nettleham with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Nettleham can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Nettleham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her two bedroom apartment in Nettleham, Sarah initiated the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in February 2010. The landlord’s charges were negotiated to about four hundred GBP.
In 2009 we were e-mailed by Dr Jasmine Smith who, having completed a garden apartment in Nettleham in August 2000. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable flats in Nettleham with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended in 2086. Considering the 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.
Last Spring we were e-mailed by Dr Felix Parker , who acquired a garden flat in Nettleham in June 2000. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical flats in Nettleham with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease expiry date was in 2097. Having 71 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.