Unfortunately that a Albrighton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Albrighton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Albrighton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| Coventry Building Society | 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. |
| 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 Albrighton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Albrighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Elijah, started to get near to the 80-year threshold with the lease on his first floor apartment in Albrighton. In buying his home two decades ago, the length of the lease was of little bearing. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Elijah was able to extend his lease at the eleventh hour in July. Elijah and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had dipped below 80 years, the price would have increased by at least £850.
Mr Jasper Parker owned a one bedroom apartment in Albrighton in August 2000. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Albrighton with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease ended on 17 August 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last year we were contacted by Mr and Mrs. S Reed , who bought a recently refurbished apartment in Albrighton in September 2010. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable homes in Albrighton with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease termination date was in 2101. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.