The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Niton have the right to extend the lease for a further 90 years in accordance with legislation. Do think carefully before delaying your Niton lease extension. Putting off that expense now simply escalates the price you will ultimately have to pay to extend the lease.
Leasehold properties in Niton with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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.
Aaron owned a conversion flat in Niton being marketed with a lease of just over 72 years remaining. Aaron informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Dr U Bertrand was assigned a lease of a one bedroom apartment in Niton in July 2011. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable residencies in Niton with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 5 February 2077. Given that there were 52 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Last February we were phoned by Mr and Mrs. J Ali , who was assigned a lease of a recently refurbished flat in Niton in January 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Niton with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated in 2098. Considering the 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.