There is no doubt about it a leasehold property in Niton is a wasting asset as a result of the shortening lease. If the lease has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Niton will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Niton with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Niton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Niton valuers.
Joseph owned a 2 bedroom apartment in Niton on the market with a lease of a little over 61 years left. Joseph on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph procured expert advice and secured satisfactory deal informally and sell the flat.
In 2009 we were approached by Dr F David who, having owned a first floor apartment in Niton in September 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Niton with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease end date was in 2084. Taking into account 58 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Last Spring we were e-mailed by Ms R Petit , who took over the lease of a studio apartment in Niton in September 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Niton with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2104. Considering the 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.