Allestree residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold premises in Allestree with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Off the back of protracted correspondence with the landlord of her one bedroom flat in Allestree, Shannon initiated the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in August 2009. The landlord’s charges were negotiated to under five hundred pounds.
Mr and Mrs. I Robinson moved into a one bedroom apartment in Allestree in June 1998. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Allestree with an extended lease were valued around £267,600. The average ground rent payable was £65 collected quarterly. The lease came to a finish on 23 September 2092. Taking into account 67 years left we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including costs.
Ms Hannah Morel was assigned a lease of a first floor flat in Allestree in May 2004. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative flats in Allestree with an extended lease were valued around £201,200. The mid-range ground rent payable was £55 billed monthly. The lease finished in 2081. Given that there were 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.