Nunthorpe leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Nunthorpe will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Nunthorpe with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Nunthorpe can be a difficult process. We recommend you get guidance 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 Nunthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a 2 bedroom flat in Nunthorpe on the market with a lease of a few days over fifty eight years unexpired. Andrew informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr K Richardson was assigned a lease of a purpose-built flat in Nunthorpe in June 2009. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Nunthorpe with an extended lease were worth £285,000. The average amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2096. Considering the 71 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
In 2010 we were e-mailed by Dr N Bailey who, having was assigned a lease of a recently refurbished flat in Nunthorpe in August 1995. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Nunthorpe with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected every twelve months. The lease concluded in 2085. Given that there were 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.