The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Nunhead have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Nunhead lease extension. Shelving that expense now simply escalates the price you will eventually have to pay to extend the lease.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Nunhead leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Finley, came seriously close to the 80-year mark with the lease on his first floor flat in Nunhead. In buying his flat 19 years ago, the unexpired term was of no relevance. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Finley extended the lease at the eleventh hour last May. Finley and the landlord subsequently agreed on a premium of £5,500 . If the lease had fallen to less than eighty years, the premium would have escalated by at least £900.
Mr and Mrs. B Adams took over the lease of a ground floor flat in Nunhead in February 2009. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Nunhead with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed in 2089. Having 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.
An example of a Freehold Enfranchisement case 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 related to 3 flats. The unexpired term as at the valuation date was 80.01 years.