It’s a harsh certainty that a Nailsworth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Nailsworth property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Nailsworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Nailsworth with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Half a year ago Jamie, came critically near to the eighty-year mark with the lease on his purpose- built apartment in Nailsworth. Having purchased his flat two decades ago, the length of the lease was of little importance. Fortunately, he noticed he needed to take action soon on a lease extension. Jamie was able to extend his lease just in the nick of time in July. Jamie and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £975.
In 2010 we were e-mailed by Dr O Fournier who, having was assigned a lease of a basement flat in Nailsworth in April 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Nailsworth with an extended lease were in the region of £184,000. The average ground rent payable was £55 invoiced every twelve months. The lease ran out on 20 January 2079. Taking into account 53 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Last year we were e-mailed by Mr and Mrs. F Patel , who acquired a basement apartment in Nailsworth in January 1999. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative residencies in Nailsworth with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 13 March 2099. Taking into account 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.