Nailsworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Nailsworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Nailsworth you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Nailsworth with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Nailsworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Daniel, started to get close to the eighty-year mark with the lease on his studio flat in Nailsworth. Having purchased his property two decades ago, the unexpired term was of little significance. Luckily, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Daniel arranged for a lease extension just under the wire last August. Daniel and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £1,150.
In 2012 we were phoned by Mr M Wood who, having was assigned a lease of a garden apartment in Nailsworth in August 2003. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical premises in Nailsworth with an extended lease were worth £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
Last month we were contacted by Mr and Mrs. G Rivera , who bought a one bedroom apartment in Nailsworth in February 1996. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Nailsworth with a long lease were worth £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was in 2083. Considering the 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.