As the length of the unexpired term of a Nailsworth residential lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Nailsworth will qualify for this right; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Nailsworth with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Nailsworth can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Nailsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold owner of a 2 bedroom flat in Nailsworth on the market with a lease of a little over 59 years outstanding. Leon informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. L Sánchez , who acquired a first floor flat in Nailsworth in September 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Nailsworth with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed in 2103. Considering the 78 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
In 2011 we were contacted by Mrs Y Parker who, having was assigned a lease of a studio apartment in Nailsworth in March 1999. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar homes in Nailsworth with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 invoiced every twelve months. The lease expired in 2092. Considering the 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including professional charges.