It’s a harsh certainty that a Allestree residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Allestree property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Allestree will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Allestree,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Allestree valuers.
Off the back of lengthy negotiations with the landlord of her purpose-built flat in Allestree, Emma started the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was finalised in November 2012. The landlord’s costs were negotiated to slightly above 700 pounds.
Last month we were called by Mr Finn Petit , who took over the lease of a purpose-built apartment in Allestree in January 1998. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Allestree with 100 year plus lease were in the region of £218,400. The mid-range ground rent payable was £60 billed annually. The lease expired on 17 November 2084. Given that there were 59 years remaining we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including fees.
Dr Robyn Roux took over the lease of a studio apartment in Allestree in May 2012. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical flats in Allestree with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 13 August 2104. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.