The value of Nailsworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Nailsworth can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge 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.
Half a year ago Ali, started to get close to the 80-year mark with the lease on his one bedroom flat in Nailsworth. Having bought his flat 18 years ago, the unexpired term was of no importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Ali was able to extend his lease just ahead of time last June. Ali and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,025.
Mr and Mrs. F François moved into a one bedroom flat in Nailsworth in October 1999. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Nailsworth with 100 year plus lease were valued about £218,400. The mid-range amount of ground rent was £60 billed quarterly. The lease concluded on 6 October 2084. Given that there were 59 years left we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including legals.
In 2013 we were contacted by Dr Kyle Young who, having acquired a garden apartment in Nailsworth in July 1997. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Nailsworth with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2104. Considering the 79 years left we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus expenses.