Nunhead Lease Extension - Free Consultation

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Main reasons to commence your Nunhead lease extension

Top reasons for lease extension now:

Increase your lease and increase your Nunhead property value

Nunhead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Nunhead residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Nunhead you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Nunhead property with a lease extension is almost the same value as a freehold

Leasehold premises in Nunhead with more than one hundred years outstanding 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 purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders will not grant a mortgage on a short lease

Most mortgage lenders will be unwilling to lend on a lease with less than seventy years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Nunhead property becoming difficult to sell or remortgage.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Nunhead lease extension solicitors or enfranchisement solicitors

Using our service will provide you enhanced control over the value of your Nunhead leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Nunhead Lease Extension Example Cases:

Kyle, Nunhead, South East London,

Kyle was the the leasehold proprietor of a high value apartment in Nunhead being sold with a lease of a little over 59 years unexpired. Kyle informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Nunhead case:

In 2014 we were approached by Mrs P Phillips who, having completed a ground floor flat in Nunhead in February 1997. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative flats in Nunhead with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 5 February 2098. Taking into account 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.

Decision in Lewisham

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.