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 the lease gets more expensive. It is the case that most Nailsworth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Nailsworth you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Nailsworth leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Nailsworth with more than one hundred years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| The Mortgage Works |
The lawyers that we work with undertake Nailsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following protracted correspondence with the freeholder of her garden flat in Nailsworth, Abbie started the lease extension process as the eighty year threshold was swiftly advancing. The legal work was finalised in May 2014. The freeholder’s fees were restricted to under six hundred GBP.
In 2010 we were phoned by Dr R Bonnet who, having bought a one bedroom apartment in Nailsworth in July 1997. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative residencies in Nailsworth with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 billed yearly. The lease elapsed on 8 August 2087. Given that there were 61 years remaining we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including expenses.
In 2010 we were contacted by Dr U Howard who, having purchased a one bedroom flat in Nailsworth in November 2010. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical premises in Nailsworth with an extended lease were worth £166,800. The average ground rent payable was £50 invoiced yearly. The lease termination date was on 27 January 2076. Considering the 50 years outstanding we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.