Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Nunthorpe. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Nunthorpe have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful attention before putting off your Nunthorpe lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in Nunthorpe with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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 are not acceptable. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Nunthorpe can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Nunthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Archie, came perilously close to the eighty-year threshold with the lease on his two bedroom apartment in Nunthorpe. Having bought his property two decades ago, the length of the lease was of minimal importance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Archie extended the lease just in the nick of time last April. Archie and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had slipped below 80 years, the figure would have escalated by a minimum £1,025.
In 2011 we were e-mailed by Dr Luke Laurent who, having purchased a purpose-built apartment in Nunthorpe in September 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Nunthorpe with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 collected yearly. The lease concluded in 2082. Given that there were 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Mr C García completed a one bedroom flat in Nunthorpe in May 1998. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in Nunthorpe with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected quarterly. The lease came to a finish in 2102. Considering the 76 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.