When it comes to long leasehold premises in Nunhead, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in Nunhead with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has under eighty years left, under the current statute the freeholder can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Nunhead with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
John owned a high value flat in Nunhead on the market with a lease of fraction over 59 years unexpired. John informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to agree 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 due on a lease extension were John to invoke his statutory right. John 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 Spring we were phoned by Dr Georgina Bernard , who was assigned a lease of a one bedroom apartment in Nunhead in January 2012. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparable residencies in Nunhead with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 28 October 2104. Taking into account 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Nunhead flat 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 was in relation to 3 flats. The remaining number of years on the lease was 80.01 years.