Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Allenton. Inevitably, the period of lease remaining reduces as time goes by. This may pass 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. Qualifying leaseholders in Allenton have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give careful attention before putting off your Allenton lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Allenton with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Allenton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Allenton valuers.
Two years ago Kai, came dangerously near to the eighty-year threshold with the lease on his purpose- built flat in Allenton. In buying his flat two decades ago, the length of the lease was of no importance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Kai was able to extend his lease just in the nick of time in June. Kai and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more costly by at least £1,025.
Last May we were approach by Dr Reuben Campbell , who bought a ground floor flat in Allenton in August 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Allenton with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2099. Taking into account 73 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were e-mailed by Dr Victoria Pérez who, having acquired a first floor apartment in Allenton in January 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Allenton with a long lease were valued about £240,600. The mid-range amount of ground rent was £65 billed annually. The lease expiry date was on 15 January 2088. Taking into account 62 years remaining we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.