Nailsea leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Nailsea will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Nailsea with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a landlord in Nailsea,the lease extension experts 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 Nailsea valuers.
Jamie owned a conversion apartment in Nailsea being marketed with a lease of just over 59 years outstanding. Jamie informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. Y James completed a recently refurbished apartment in Nailsea in November 2008. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Nailsea with an extended lease were in the region of £267,600. The average amount of ground rent was £65 collected monthly. The lease finished on 26 October 2093. Given that there were 67 years outstanding we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.
Last year we were approach by Ms Francesca Bell , who owned a ground floor flat in Nailsea in April 2006. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Nailsea with an extended lease were valued around £201,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed on 13 February 2082. Given that there were 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.