Why you should commence your Nailsea lease extension

Top reasons for lease extension now:

A Nailsea lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Nailsea is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years remaining then this decrease may be fractional however there will become a point in time 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 increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Nailsea will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Nailsea with in excess of 100 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to finance a property on a short lease

Many banks and building societies will be unwilling to lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely find it difficult in obtaining a mortgage and this will result in your Nailsea property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Nailsea lease extension solicitors or enfranchisement solicitors

Using our service will provide you enhanced control over the value of your Nailsea leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Nailsea Lease Extension Case Studies:

Andrew, Nailsea, North Somerset

Half a year ago Andrew, came precariously near to the eighty-year threshold with the lease on his two bedroom flat in Nailsea. Having bought his property twenty years ago, the lease term was of minimal significance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Andrew extended the lease at the eleventh hour in March. Andrew and the freeholder ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £950.

Nailsea case:

Last Spring we were phoned by Mr Evan Collins , who took over the lease of a first floor apartment in Nailsea in May 2010. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Nailsea with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease end date was in 2096. Having 70 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.

Nailsea case:

In 2012 we were e-mailed by Mr and Mrs. M Davies who, having took over the lease of a one bedroom apartment in Nailsea in November 2005. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable properties in Nailsea with a long lease were in the region of £218,400. The average ground rent payable was £60 billed per annum. The lease concluded in 2085. Having 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus legals.