The nearer a residential lease in Nottingham nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has less 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 rational as to why you should extend the lease without delay. Most flat owners in Nottingham will meet the qualifying criteria; however a conveyancer can advise whether you are eligible to extend your lease. 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.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Nottingham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Hunter owned a conversion flat in Nottingham being sold with a lease of a few days over 61 years unexpired. Hunter on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. Y García , who was assigned a lease of a ground floor apartment in Nottingham in September 2007. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Nottingham with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out in 2099. Having 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Dr J Laurent bought a one bedroom flat in Nottingham in January 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Nottingham with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected monthly. The lease terminated in 2088. Having 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.