There is no doubt about it a leasehold property in Nailsworth is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Nailsworth will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Nailsworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nailsworth valuers.
In 2014 Kyle, came critically close to the 80-year mark with the lease on his one bedroom flat in Nailsworth. Having purchased his property two decades ago, the unexpired term was of little importance. Luckily, he noticed he needed to take steps soon on a lease extension. Kyle arranged for a lease extension just under the wire last September. Kyle and the landlord who owned the flat above eventually settled on an amount of £5,500 . If he had missed the deadline, the figure would have increased by at least £850.
Last Autumn we were e-mailed by Mr and Mrs. S Adams , who took over the lease of a garden flat in Nailsworth in January 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical homes in Nailsworth with a long lease were in the region of £275,000. The average ground rent payable was £45 invoiced monthly. The lease finished on 7 September 2095. Taking into account 69 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
Mr Felix Gunderson moved into a purpose-built flat in Nailsworth in April 2002. We are asked if we could shed any light on how much (approximately) price 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 £216,000. The average ground rent payable was £60 collected monthly. The lease terminated on 20 January 2084. Given that there were 58 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.