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 more than one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Nottingham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Nottingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur was the the leasehold owner of a 2 bedroom apartment in Nottingham on the market with a lease of just over sixty years outstanding. Arthur on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were phoned by Mr and Mrs. K Khan , who moved into a studio apartment in Nottingham in May 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar residencies in Nottingham with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 billed monthly. The lease ran out in 2091. Given that there were 65 years left we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
Last year we were phoned by Mr Milo Lewis , who moved into a newly refurbished flat in Nottingham in March 2011. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar flats in Nottingham with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2080. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including professional charges.