Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Alfreton. Clearly, the term of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Alfreton have the right to extend the lease for a further 90 years in accordance with legislation. Do give due attention before delaying your Alfreton lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Alfreton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her leasehold flat in Alfreton, Ella commenced the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was finalised in March 2005. The landlord’s costs were restricted to below 500 pounds.
Last year we were phoned by Mrs D Watson , who took over the lease of a studio apartment in Alfreton in October 2005. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Alfreton with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish in 2096. Taking into account 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2012 we were contacted by Dr Edward Howard who, having owned a studio flat in Alfreton in May 2006. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Alfreton with an extended lease were valued about £256,600. The average ground rent payable was £60 collected annually. The lease expired on 18 June 2076. Having 52 years left we estimated the compensation to the landlord to extend the lease to be within £41,800 and £48,400 exclusive of costs.