Nottingham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Nottingham 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 Nottingham you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Nottingham leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Nottingham with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Nottingham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Theo was the the leasehold proprietor of a studio flat in Nottingham on the market with a lease of a few days over sixty years remaining. Theo on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give 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 increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and secured an acceptable resolution informally and sell the property.
Mr and Mrs. O Ali moved into a first floor flat in Nottingham in October 2003. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable flats in Nottingham with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2105. Having 79 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Mr Alex Brooks acquired a one bedroom apartment in Nottingham in September 2001. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative premises in Nottingham with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 collected yearly. The lease ran out on 2 April 2094. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.