Allestree leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Allestree will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Allestree with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Allestree leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold proprietor of a studio flat in Allestree being marketed with a lease of a few days over sixty years unexpired. Hunter on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were called by Mr and Mrs. T Sharif , who took over the lease of a one bedroom apartment in Allestree in July 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Allestree with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease terminated in 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
Dr C Sharif bought a one bedroom apartment in Allestree in October 1998. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparative flats in Allestree with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2087. Given that there were 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of fees.