It’s a harsh truth that a Allenton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Allenton property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Allenton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Allenton with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Allenton can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 Allenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Ethan, started to get close to the 80-year threshold with the lease on his leasehold flat in Allenton. In buying his property twenty years previously, the lease term was of little concern. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Ethan extended the lease just under the wire last May. Ethan and the freeholder via the management company subsequently agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the premium would have become more exhorbitant by at least £950.
Last Christmas we were phoned by Mrs Amy Petit , who owned a studio flat in Allenton in September 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Allenton with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2099. Having 74 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Austin Bonnet was assigned a lease of a basement apartment in Allenton in January 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Allenton with a long lease were valued around £248,000. The average ground rent payable was £65 billed yearly. The lease terminated on 24 May 2088. Taking into account 63 years left we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus expenses.