Unfortunately that a Niton residential lease is a wasting 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 reduction being disguised by increases in the Niton property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying half 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 Niton will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. 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 conveyancer for the duration of the process.
Leasehold residencies in Niton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Niton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 Niton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the freeholder of her ground floor flat in Niton, Shannon initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The transaction completed in March 2010. The freeholder’s fees were negotiated to about six hundred pounds.
In 2013 we were called by Mr and Mrs. S Allen who, having moved into a recently refurbished flat in Niton in August 2012. The question was if we could approximate the price could be for a ninety year lease extension. Identical premises in Niton with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed on 8 June 2103. Taking into account 77 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Dr T Patel owned a purpose-built apartment in Niton in March 2011. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Niton with an extended lease were worth £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2092. Given that there were 66 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including expenses.