The re-sale value of a leasehold property in Alfreton is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised prior to the eighty year mark. Current legislation entitles Alfreton qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Alfreton with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Alfreton can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Alfreton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Stanley, started to get near to the 80-year mark with the lease on his leasehold flat in Alfreton. Having bought his home two decades ago, the lease term was of minimal significance. As luck would have it, he realised he needed to take action soon on Extending the lease. Stanley arranged for a lease extension just ahead of time last April. Stanley and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had fallen below 80 years, the premium would have escalated by at least £1,100.
Last Autumn we were approach by Dr E Mitchell , who was assigned a lease of a one bedroom flat in Alfreton in October 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar flats in Alfreton with a long lease were valued about £191,000. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 18 May 2084. Given that there were 58 years remaining we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including expenses.
Last month we were approach by Mr and Mrs. G Rogers , who purchased a first floor apartment in Alfreton in July 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Alfreton with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed yearly. The lease concluded on 2 November 2095. Taking into account 69 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.