Nottingham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Nottingham tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Nottingham you should see if your lease has between 70 and ninety years left. There are compelling reasons why a Nottingham leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
Leasehold properties in Nottingham with in excess of one hundred years outstanding on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Nottingham,the lease extension experts that we work with will always be willing 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.
Following unsuccessful correspondence with the freeholder of her basement flat in Nottingham, Abbie commenced the lease extension process as the eighty year deadline was fast advancing. The legal work was finalised in July 2007. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. B Cooper , who bought a first floor flat in Nottingham in July 2010. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Nottingham with 100 year plus lease were worth £240,600. The average ground rent payable was £60 invoiced per annum. The lease terminated on 19 January 2087. Having 62 years left we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.
In 2014 we were e-mailed by Dr B López who, having moved into a studio flat in Nottingham in September 2009. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Nottingham with a long lease were valued around £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 2 February 2076. Considering the 51 years unexpired we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.