The closer a residential lease in Nailsworth nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Nailsworth will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Nailsworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nailsworth valuers.
Subsequent to protracted correspondence with the landlord of her purpose-built flat in Nailsworth, Elizabeth commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction completed in January 2014. The freeholder’s fees were kept to an absolute minimum.
Last month we were contacted by Dr A Ramírez , who bought a basement flat in Nailsworth in July 2009. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Nailsworth with an extended lease were valued around £225,800. The average ground rent payable was £60 invoiced per annum. The lease ran out on 14 October 2086. Having 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of expenses.
Mr D Davies purchased a one bedroom apartment in Nailsworth in June 2003. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Nailsworth with a long lease were valued about £210,000. The average amount of ground rent was £50 collected yearly. The lease finished in 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.