On the balance of probabilities if you own a flat in Allenton you actually own a long leasehold interest over your property
Leasehold properties in Allenton with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Allenton can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 in-depth market knowledge 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.
After unsuccessful discussions with the freeholder of her garden flat in Allenton, Natasha commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in January 2007. The landlord’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mrs D Martinez who, having bought a purpose-built apartment in Allenton in February 2007. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar homes in Allenton with 100 year plus lease were valued about £265,200. The average ground rent payable was £65 collected monthly. The lease came to a finish in 2091. Having 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.
Last year we were called by Mr and Mrs. P Kelly , who completed a purpose-built apartment in Allenton in January 2007. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Allenton with an extended lease were in the region of £198,800. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish on 7 November 2080. Having 55 years left we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.