On the balance of probabilities where you own a flat in Nunhead you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Nunhead 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 conveyancing solicitor we work with provide it.
Zachary was the the leasehold proprietor of a high value apartment in Nunhead being marketed with a lease of fraction over sixty years unexpired. Zachary on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. C Lefebvre completed a one bedroom flat in Nunhead in May 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Nunhead with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2099. Considering the 73 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
An example of a Freehold Enfranchisement case for a Nunhead premises is 41 Endwell Road in March 2013. this matter relateed to the acquisition of the freehold of a mid- terraced Victorian house converted into three separate self-contained dwellings. By an order dated 28/11/2012, Deputy District Judge Cole in the Bromley County Court held that the leaseholders were entitled to acquire the freehold and directed that the premium payable be determined by this Tribunal. The Tribunal assessed the premium to be £14,753 This case related to 3 flats. The unexpired lease term was 80.01 years.