The nearer a domestic lease in Allestree nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Allestree will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Allestree can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Allestree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her two bedroom flat in Allestree, Laura started the lease extension process as the eighty year deadline was fast nearing. The legal work was finalised in April 2008. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. C Petit completed a one bedroom flat in Allestree in March 2006. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Allestree with a long lease were worth £235,600. The mid-range ground rent payable was £60 collected monthly. The lease expired in 2087. Taking into account 62 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.
Mr and Mrs. F Jackson was assigned a lease of a newly refurbished apartment in Allestree in July 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Allestree with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 billed monthly. The lease elapsed in 2076. Having 51 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.