Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Nuthall. Clearly, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Nuthall have the legal entitlement to extend the lease for a further 90 years under statute. You should give due attention before putting off your Nuthall lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Nuthall leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her one bedroom flat in Nuthall, Isobel commenced the lease extension process as the eighty year mark was quickly nearing. The legal work was finalised in August 2009. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were called by Dr K Rogers , who bought a ground floor flat in Nuthall in May 2008. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar residencies in Nuthall with an extended lease were worth £200,800. The average ground rent payable was £65 collected yearly. The lease ran out on 7 March 2086. Considering the 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
Last Christmas we were approach by Mr and Mrs. E Roberts , who took over the lease of a purpose-built flat in Nuthall in September 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative premises in Nuthall with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2097. Given that there were 71 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.