There is no doubt about it a leasehold property in Alfreton is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Alfreton will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Alfreton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alfreton valuers.
Half a year ago Daniel, came seriously close to the 80-year threshold with the lease on his one bedroom apartment in Alfreton. In buying his flat two decades ago, the lease term was of minimal bearing. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Daniel extended the lease at the eleventh hour last July. Daniel and the freeholder eventually agreed on a premium of £5,000 . If the lease had slid to less than 80 years, the price would have become more costly by at least £875.
Last Summer we were phoned by Mr and Mrs. P Turner , who was assigned a lease of a basement apartment in Alfreton in March 2007. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Alfreton with an extended lease were worth £208,200. The average amount of ground rent was £65 collected monthly. The lease termination date was in 2087. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
Last Autumn we were approach by Mr and Mrs. N Morris , who purchased a ground floor flat in Alfreton in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Alfreton with a long lease were worth £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2098. Given that there were 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.