Main reasons to start your Nuthall lease extension

Top reasons for lease extension now:

A Nuthall leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Nuthall you actually own a long leasehold interest over your property

Nuthall property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Nuthall 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not issue a mortgage with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Nuthall lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Nuthall,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 Nuthall valuers.

Nuthall Lease Extension Case Studies:

Jason, Nuthall, Nottinghamshire,

Jason owned a 2 bedroom flat in Nuthall being sold with a lease of a little over fifty eight years outstanding. Jason on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Nuthall case:

In 2013 we were phoned by Mr Teddy Morris who, having acquired a ground floor apartment in Nuthall in June 2006. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Nuthall with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 8 October 2100. Given that there were 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.

Nuthall case:

In 2010 we were called by Mr S Gunderson who, having bought a garden flat in Nuthall in October 2002. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar properties in Nuthall with a long lease were valued about £173,800. The mid-range amount of ground rent was £65 collected monthly. The lease expired in 2080. Considering the 55 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.