When it comes to long leasehold property in Alvaston, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Alvaston with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Engaging our service gives you enhanced control over the value of your Alvaston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her one bedroom apartment in Alvaston, Louise started the lease extension process as the 80 year deadline was quickly advancing. The transaction was concluded in May 2015. The landlord’s charges were kept to an absolute minimum.
In 2012 we were approached by Mr and Mrs. S Gómez who, having moved into a purpose-built flat in Alvaston in May 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Alvaston with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed monthly. The lease finished on 21 June 2096. Given that there were 71 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Summer we were phoned by Dr Muhammad Girard , who bought a one bedroom flat in Alvaston in March 2003. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Alvaston with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2085. Given that there were 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of fees.