Nunhead leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Nunhead will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Nunhead with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Using our service gives you increased control over the value of your Nunhead leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a high value flat in Nunhead on the market with a lease of a few days over sixty years remaining. Leo on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Summer we were contacted by Dr Bethany Flores , who acquired a garden flat in Nunhead in April 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Nunhead with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 invoiced yearly. The lease concluded in 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Nunhead property 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 residue of the current lease was 80.01 years.