When it comes to long leasehold premises in Allenton, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Allenton with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Allenton with over 100 years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Allenton,the lease extension lawyers 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.
Last Winter Eli, came precariously near to the eighty-year threshold with the lease on his basement flat in Allenton. Having bought his flat 18 years ago, the lease term was of little concern. Luckily, he recognised he needed to take action soon on Extending the lease. Eli was able to extend his lease just under the wire in August. Eli and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the price would have gone up by at least £1,125.
In 2009 we were contacted by Mr and Mrs. F Robinson who, having took over the lease of a recently refurbished flat in Allenton in March 2009. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical residencies in Allenton with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated in 2097. Given that there were 73 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. P Wood took over the lease of a garden apartment in Allenton in March 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in Allenton with an extended lease were valued around £240,600. The average amount of ground rent was £60 billed every twelve months. The lease end date was in 2086. Taking into account 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.