Unfortunately that a Nottingham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Nottingham property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Nottingham will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Nottingham with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Using our service gives you enhanced control over the value of your Nottingham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Ryan, came precariously close to the eighty-year threshold with the lease on his first floor apartment in Nottingham. Having purchased his home 19 years ago, the unexpired term was of minimal relevance. by good luck, he recognised he needed to take steps soon on Extending the lease. Ryan arranged for a lease extension just ahead of time in July. Ryan and the freeholder eventually settled on a premium of £5,000 . If the lease had slipped below 80 years, the figure would have gone up by a minimum £1,050.
Last Spring we were approach by Dr Felix Simon , who moved into a one bedroom flat in Nottingham in March 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Nottingham with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected per annum. The lease expired in 2098. Taking into account 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.
Last Christmas we were e-mailed by Mr and Mrs. G James , who bought a newly refurbished apartment in Nottingham in May 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Nottingham with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 8 August 2087. Having 61 years left we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.