When it comes to domestic leasehold property in Alfreton, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years left. Residents in Alfreton with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once a lease has fewer than 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Alfreton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Alfreton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Alfreton valuers.
During the course of the last few months William, came perilously near to the eighty-year mark with the lease on his one bedroom flat in Alfreton. Having bought his home two decades ago, the length of the lease was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. William arranged for a lease extension just under the wire in July. William and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he had missed the deadline, the premium would have gone up by at least £900.
In 2009 we were called by Dr E Allen who, having took over the lease of a garden flat in Alfreton in May 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical premises in Alfreton with a long lease were in the region of £235,200. The average ground rent payable was £45 invoiced quarterly. The lease expiry date was on 13 September 2091. Considering the 66 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last month we were called by Ms Poppy Reed , who bought a one bedroom flat in Alfreton in November 2009. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Identical homes in Alfreton with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expired in 2102. Given that there were 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.