It’s a harsh certainty that a Nunhead residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Nunhead property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Nunhead will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Nunhead with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society |
Engaging our service will provide you enhanced control over the value of your Nunhead leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
Theo was the the leasehold proprietor of a high value flat in Nunhead on the market with a lease of a little over fifty eight years outstanding. Theo informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr O King completed a purpose-built flat in Nunhead in February 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Nunhead with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 invoiced monthly. The lease ran out on 8 July 2088. Considering the 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Nunhead residence 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 residue of the current lease was 80.01 years.