For anyone whose Nailsworth home is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Nailsworth with in excess of one hundred years left 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 valuer with experience in lease extensions.
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 a wealth of experience procuring Nailsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas owned a 2 bedroom apartment in Nailsworth being marketed with a lease of just over 61 years unexpired. Thomas informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and secured satisfactory deal informally and sell the flat.
In 2010 we were called by Mr and Mrs. K Roux who, having moved into a ground floor apartment in Nailsworth in April 2009. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Nailsworth with a long lease were in the region of £295,000. The average ground rent payable was £45 billed quarterly. The lease expired in 2099. Having 74 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. O Morris owned a basement flat in Nailsworth in January 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Nailsworth with an extended lease were valued about £243,000. The mid-range ground rent payable was £65 billed per annum. The lease elapsed in 2088. Considering the 63 years remaining we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.