With a domestic leasehold premises in Nunhead, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. 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 a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Nunhead with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than eighty years left, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Nunhead with in excess of one hundred years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with procure 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.
Logan owned a studio apartment in Nunhead being sold with a lease of just over sixty years unexpired. Logan informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of 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 Logan to invoke his statutory right. Logan procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2012 we were contacted by Mr and Mrs. I André who, having bought a ground floor apartment in Nunhead in November 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Nunhead with 100 year plus lease were worth £225,400. The average ground rent payable was £45 billed per annum. The lease ran out on 11 June 2089. Given that there were 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 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 related to 3 flats. The unexpired lease term was 80.01 years.