Nailsworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Nailsworth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Nailsworth you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Nailsworth flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Nailsworth with over 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Nailsworth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nailsworth valuers.
James was the the leasehold owner of a 2 bedroom flat in Nailsworth being sold with a lease of fraction over fifty eight years left. James informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2011 we were approached by Mr and Mrs. J Wood who, having owned a basement flat in Nailsworth in January 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Nailsworth with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2098. Given that there were 72 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Autumn we were phoned by Ms Chantelle Petit , who owned a basement apartment in Nailsworth in September 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Nailsworth with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 billed per annum. The lease ran out on 15 March 2087. Having 61 years as a residual term we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.