Unfortunately that a Nottingham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Nottingham property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Nottingham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Nottingham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nottingham valuers.
Luca was the the leasehold proprietor of a 2 bedroom apartment in Nottingham on the market with a lease of just over fifty eight years remaining. Luca informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr O Clarke who, having took over the lease of a first floor apartment in Nottingham in July 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Nottingham with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished in 2079. Given that there were 53 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Mr Nathan Norbert purchased a studio flat in Nottingham in September 1995. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparable homes in Nottingham with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2099. Having 73 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.