Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Alfreton. Inevitably, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Alfreton have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due consideration before putting off your Alfreton lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you better control over the value of your Alfreton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jonathan, started to get close to the eighty-year threshold with the lease on his first floor apartment in Alfreton. In buying his home 19 years previously, the length of the lease was of little relevance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Jonathan was able to extend his lease just under the wire in September. Jonathan and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If the lease had fallen below eighty years, the sum would have gone up by a minimum £900.
In 2009 we were e-mailed by Dr Isabel Young who, having owned a recently refurbished flat in Alfreton in March 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Identical flats in Alfreton with a long lease were worth £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease ran out on 13 April 2079. Having 53 years remaining we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including expenses.
Mr T Ward was assigned a lease of a one bedroom flat in Alfreton in July 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Alfreton with a long lease were valued around £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2090. Having 64 years unexpired we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.