When it comes to domestic leasehold property in Niton, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Niton with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When a lease has less than 80 years remaining, under the current legislation the landlord can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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:
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The lawyers that we work with procure Niton 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.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Niton, Jade commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The lease extension was concluded in January 2010. The landlord’s costs were restricted to a tad over 550 GBP.
In 2010 we were approached by Mr David Phillips who, having moved into a basement apartment in Niton in September 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Niton with a long lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2101. Taking into account 75 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Mr Muhammad Cooper owned a first floor apartment in Niton in January 2001. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable premises in Niton with an extended lease were valued around £250,400. The average amount of ground rent was £65 collected monthly. The lease lapsed in 2090. Having 64 years left we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.