Alfreton leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Alfreton will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Alfreton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Charlie was the the leasehold proprietor of a studio apartment in Alfreton being sold with a lease of just over 72 years remaining. Charlie informally spoke with his landlord a well known Manchester-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 on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were contacted by Dr I Simon who, having was assigned a lease of a one bedroom flat in Alfreton in January 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Alfreton with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 billed per annum. The lease concluded in 2076. Having 50 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including expenses.
Last Christmas we were phoned by Mr and Mrs. O Rogers , who was assigned a lease of a one bedroom apartment in Alfreton in August 2006. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Alfreton with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 billed per annum. The lease termination date was on 28 October 2087. Considering the 61 years left we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.