Allenton leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Allenton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Allenton with in excess of one hundred 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Allenton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her basement flat in Allenton, Zoe started the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction completed in April 2010. The landlord’s charges were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. L González , who bought a studio apartment in Allenton in October 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Allenton with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was on 1 January 2089. Given that there were 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
Last Christmas we were approach by Mr and Mrs. H Fournier , who moved into a one bedroom flat in Allenton in September 2008. The dilemma 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. Identical premises in Allenton with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2078. Considering the 52 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.