For anyone whose Nunhead flat is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
In recent months Cameron, came seriously near to the eighty-year threshold with the lease on his studio flat in Nunhead. In buying his flat two decades ago, the unexpired term was of no relevance. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Cameron was able to extend his lease just ahead of time in August. Cameron and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,000.
In 2013 we were e-mailed by Mr and Mrs. H Roberts who, having owned a studio flat in Nunhead in September 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Nunhead with an extended lease were valued around £200,800. The average ground rent payable was £65 collected annually. The lease expired on 28 August 2085. Having 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus expenses.
An example of a Freehold Enfranchisement case 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 affected 3 flats. The unexpired term as at the valuation date was 80.01 years.