Nuneaton residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Nuneaton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Nuneaton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Nuneaton, Elizabeth initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in February 2008. The landlord’s charges were kept to an absolute minimum.
Last Summer we were e-mailed by Mrs J Bonnet , who owned a one bedroom apartment in Nuneaton in June 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Nuneaton with an extended lease were valued about £203,200. The mid-range amount of ground rent was £65 collected per annum. The lease expiry date was in 2087. Given that there were 61 years remaining we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including costs.
Last June we were contacted by Mr and Mrs. E Girard , who purchased a recently refurbished flat in Nuneaton in August 2005. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical homes in Nuneaton with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease finished in 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.