Nailsworth leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Nailsworth will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective 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 experience and the close ties they enjoy with Nailsworth valuers.
Two years ago Logan, started to get close to the eighty-year mark with the lease on his basement apartment in Nailsworth. In buying his property 18 years previously, the length of the lease was of minimal bearing. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Logan arranged for a lease extension just in the nick of time in September. Logan and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If the lease had fallen lower than eighty years, the price would have escalated by at least £1,100.
Mrs Y Bell owned a ground floor apartment in Nailsworth in January 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Nailsworth with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease end date was on 12 April 2082. Considering the 57 years remaining we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.
Dr B Allen was assigned a lease of a ground floor flat in Nailsworth in January 2002. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Nailsworth with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2102. Having 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.