The value of Nettleham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Nettleham 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.
Dylan owned a 2 bedroom apartment in Nettleham being sold with a lease of just over 72 years left. Dylan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Summer we were contacted by Mr N Gray , who owned a ground floor apartment in Nettleham in April 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Nettleham with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 billed annually. The lease ended in 2093. Having 67 years left we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.
In 2014 we were approached by Mr S Martínez who, having took over the lease of a basement flat in Nettleham in February 2004. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical premises in Nettleham with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 18 March 2104. Having 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.