Nailsea leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Nailsea will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s prudent 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 approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Nailsea leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold proprietor of a high value apartment in Nailsea on the market with a lease of a little over fifty eight years remaining. Alex on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant 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 due on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Dr Y Green who, having was assigned a lease of a ground floor flat in Nailsea in August 2000. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar flats in Nailsea with an extended lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease ended in 2084. Having 58 years as a residual term we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
In 2013 we were phoned by Mr D Robinson who, having completed a one bedroom apartment in Nailsea in May 2007. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical flats in Nailsea with an extended lease were in the region of £200,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2104. Given that there were 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.