There is no doubt about it a leasehold property in Alfreton is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Alfreton will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Alfreton with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Alfreton can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Alfreton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Charlie, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Alfreton. Having bought his property two decades ago, the length of the lease was of no bearing. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Charlie was able to extend his lease just under the wire in June. Charlie and the landlord ultimately settled on the final figure of £5,000 . If the lease had slid to less than eighty years, the figure would have become more costly by a minimum £1,075.
In 2011 we were phoned by Mr and Mrs. A Brown who, having moved into a ground floor apartment in Alfreton in April 2010. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable flats in Alfreton with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed in 2101. Having 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last Winter we were phoned by Mrs Mia Flores , who was assigned a lease of a one bedroom apartment in Alfreton in April 2006. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Alfreton with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 15 November 2081. Considering the 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.