When it comes to long leasehold property in Nunhead, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Nunhead with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Nunhead with in excess of 100 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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. |
Lease extensions in Nunhead can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Nunhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Mason, started to get close to the 80-year threshold with the lease on his leasehold apartment in Nunhead. In buying his flat twenty years previously, the length of the lease was of little bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Mason arranged for a lease extension just ahead of time last March. Mason and the landlord in the end agreed on an amount of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £950.
In 2010 we were called by Mr T Morgan who, having purchased a ground floor apartment in Nunhead in June 1995. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Nunhead with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 collected yearly. The lease expired in 2077. Considering the 51 years left we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.
An example of a Freehold Enfranchisement decision 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 unexpired term as at the valuation date was 80.01 years.