On the balance of probabilities where you own a flat in Nottingham you actually own a long leasehold interest over your property
Leasehold premises in Nottingham with over 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle 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.
In recent months Oscar, started to get near to the 80-year threshold with the lease on his basement apartment in Nottingham. Having bought his flat 18 years previously, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Oscar was able to extend his lease just ahead of time in March. Oscar and the landlord in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,150.
In 2013 we were phoned by Mr Matthew Hernández who, having moved into a basement apartment in Nottingham in February 2009. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Nottingham with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 16 July 2080. Taking into account 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including professional charges.
Mr and Mrs. T Miller bought a garden flat in Nottingham in August 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Nottingham with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated in 2100. Taking into account 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.