Allestree leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Allestree enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Allestree you would be well advised to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Allestree leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service will provide you better control over the value of your Allestree leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a conversion flat in Allestree being marketed with a lease of a little over 72 years unexpired. Jack on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last Winter we were called by Mr Nathaniel Davies , who moved into a garden flat in Allestree in May 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Allestree with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease ran out in 2094. Given that there were 70 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Dr Jessica Phillips bought a basement apartment in Allestree in January 2000. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Allestree with an extended lease were in the region of £218,400. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2083. Having 59 years left we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.