The nearer a domestic lease in Nailsworth gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Nailsworth will qualify for this right; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Nailsworth with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Nailsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy was the the leasehold owner of a studio flat in Nailsworth being sold with a lease of a little over sixty years remaining. Teddy informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last year we were approach by Mr and Mrs. J Hernández , who completed a one bedroom flat in Nailsworth in June 2005. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical flats in Nailsworth with a long lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease concluded on 20 January 2097. Having 71 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Dr Nathaniel Edwards took over the lease of a ground floor apartment in Nailsworth in June 1995. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar premises in Nailsworth with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out in 2086. Having 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £25,700 and £29,600 not including legals.