When it comes to residential leasehold premises in Allenton, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Residents in Allenton with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 procure 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.
Last Christmas Seth, came perilously near to the 80-year threshold with the lease on his basement apartment in Allenton. Having bought his flat two decades ago, the unexpired term was of no interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Seth arranged for a lease extension just in the nick of time last March. Seth and the freeholder ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,000.
In 2010 we were called by Dr Elijah González who, having bought a one bedroom flat in Allenton in January 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Allenton with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease ended in 2097. Taking into account 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Mr and Mrs. R Jones completed a one bedroom flat in Allenton in November 2000. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparable properties in Allenton with an extended lease were in the region of £230,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2086. Given that there were 60 years as a residual term we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of expenses.