Unfortunately that a Nettleham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Nettleham property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Nettleham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Nettleham with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Nettleham can be a difficult process. We recommend you secure guidance 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 a wealth of experience 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.
Luca owned a conversion apartment in Nettleham being sold with a lease of just over 61 years unexpired. Luca informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. G Norbert purchased a studio apartment in Nettleham in August 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Nettleham with an extended lease were worth £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 7 July 2076. Given that there were 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including professional charges.
Last Winter we were phoned by Mrs Lily Bell , who completed a recently refurbished flat in Nettleham in January 2012. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Nettleham with 100 year plus lease were valued around £208,200. The mid-range amount of ground rent was £65 billed yearly. The lease lapsed in 2087. Having 61 years left we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including fees.