Nailsworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Nailsworth tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Nailsworth you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society |
Regardless of whether you are a tenant or a freeholder in Nailsworth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nailsworth valuers.
Trailing protracted correspondence with the freeholder of her two bedroom flat in Nailsworth, Rhiannon initiated the lease extension process just as the lease was nearing the all-important 80-year threshold. The transaction was concluded in March 2015. The landlord’s charges were negotiated to approximately 450 GBP.
In 2014 we were phoned by Mr and Mrs. R Gunderson who, having bought a basement flat in Nailsworth in January 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Nailsworth with 100 year plus lease were worth £208,600. The average ground rent payable was £60 billed yearly. The lease expired on 17 August 2083. Taking into account 57 years left we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Last year we were called by Mr and Mrs. T Morris , who took over the lease of a ground floor flat in Nailsworth in January 2004. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Nailsworth with an extended lease were valued around £200,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 20 February 2103. Taking into account 77 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.