As the length of the unexpired term of a Allenton residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Allenton will qualify for this right; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Allenton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her ground floor flat in Allenton, Hannah initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The transaction was concluded in November 2005. The freeholder’s costs were negotiated to about 650 GBP.
In 2011 we were approached by Mr and Mrs. J Bertrand who, having completed a ground floor flat in Allenton in November 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Allenton with a long lease were in the region of £198,800. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 18 October 2081. Given that there were 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.
Mr and Mrs. M Allen completed a purpose-built flat in Allenton in February 1997. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Allenton with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2101. Given that there were 75 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.