Unfortunately that a Nunthorpe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Nunthorpe property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Nunthorpe will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank |
Engaging our service gives you increased control over the value of your Nunthorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden was the the leasehold owner of a 2 bedroom apartment in Nunthorpe on the market with a lease of a few days over sixty years remaining. Aiden informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden procured expert legal guidance and secured an acceptable deal informally and sell the property.
In 2012 we were phoned by Dr S Davies who, having completed a ground floor flat in Nunthorpe in February 2001. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Nunthorpe with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed annually. The lease termination date was on 14 February 2087. Given that there were 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.
In 2009 we were approached by Mr and Mrs. D White who, having was assigned a lease of a recently refurbished flat in Nunthorpe in June 2010. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar residencies in Nunthorpe with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed monthly. The lease finished on 10 October 2076. Taking into account 50 years outstanding we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.