As the the remaining lease term of a Nailsworth domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Nailsworth will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you increased control over the value of your Nailsworth leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her studio apartment in Nailsworth, Natasha started the lease extension process as the 80 year mark was quickly nearing. The legal work completed in March 2005. The freeholder’s charges were restricted to approximately 650 GBP.
Last Autumn we were phoned by Mr and Mrs. Y Martínez , who completed a first floor apartment in Nailsworth in August 2004. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative flats in Nailsworth with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2105. Considering the 79 years left we estimated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.
Ms C Morgan purchased a purpose-built flat in Nailsworth in September 2005. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Nailsworth with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease came to a finish on 28 April 2094. Having 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.