Unfortunately that a Alfreton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Alfreton property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Alfreton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Alfreton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Engaging our service gives you better control over the value of your Alfreton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her garden flat in Alfreton, Rachael initiated the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in January 2012. The freeholder’s costs were restricted to below 500 GBP.
Ms G Nelson moved into a garden flat in Alfreton in August 1995. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical homes in Alfreton with 100 year plus lease were valued around £261,600. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2078. Considering the 52 years left we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including professional charges.
In 2010 we were called by Mr and Mrs. V Bell who, having purchased a one bedroom flat in Alfreton in March 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative residencies in Alfreton with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed per annum. The lease elapsed on 14 May 2089. Having 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.