Nuneaton leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher premium will be payable. Flat owners in Nuneaton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Nuneaton,the lease extension experts 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 Nuneaton valuers.
Sebastian owned a high value flat in Nuneaton being marketed with a lease of a little over 72 years outstanding. Sebastian informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last month we were phoned by Dr Natasha Miller , who owned a one bedroom apartment in Nuneaton in January 2012. The question was if we could estimate the price could be to extend the lease by ninety years. Identical properties in Nuneaton with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded on 1 September 2098. Having 73 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr N Kelly bought a one bedroom apartment in Nuneaton in April 2003. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical residencies in Nuneaton with a long lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed on 22 August 2078. Having 53 years remaining we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of expenses.