Allestree Lease Extension - Free Consultation

Before you progress with your lease extension in Allestree
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Top reasons for Allestree lease extension


Top reasons for lease extension now:

A Allestree lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Allestree. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Allestree have the legal entitlement to extend the lease for a further ninety years in accordance with statute. You should give careful attention before delaying your Allestree lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not loan monies with a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant if you are wanting to refinance your Allestree property.

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.
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.
National Westminster Bank Mortgage term plus 30 years.

What makes us experts in Allestree lease extensions?

The conveyancing solicitors that we work with handle Allestree lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Allestree Lease Extension Case Summaries:

Lily, Allestree, Derbyshire,

Subsequent to lengthy discussions with the freeholder of her first floor apartment in Allestree, Lily commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in March 2006. The freeholder’s costs were negotiated to approximately 550 GBP.

Allestree case:

In 2012 we were approached by Mr and Mrs. J James who, having owned a studio apartment in Allestree in June 2001. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative residencies in Allestree with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished in 2095. Given that there were 70 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.

Allestree case:

Mr and Mrs. J Nelson acquired a purpose-built apartment in Allestree in July 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Allestree with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 collected annually. The lease concluded on 17 March 2084. Taking into account 59 years as a residual term we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus legals.