With a residential leasehold property in Nunhead, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Nunhead with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Nunhead with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Nunhead,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nunhead valuers.
Gabriel owned a high value apartment in Nunhead being sold with a lease of a few days over fifty eight years unexpired. Gabriel on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were phoned by Ms Louise Vincent , who owned a purpose-built flat in Nunhead in August 2006. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Nunhead with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended in 2093. Considering the 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Nunhead premises 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 number of years remaining on the existing lease(s) was 80.01 years.