The value of Alfreton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Alfreton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing protracted negotiations with the landlord of her studio apartment in Alfreton, Millie started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension completed in January 2014. The landlord’s fees were negotiated to slightly above 650 GBP.
Last Spring we were contacted by Mr and Mrs. A Moreau , who took over the lease of a basement flat in Alfreton in March 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Alfreton with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed on 6 November 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of legals.
Last year we were phoned by Dr Matthew David , who owned a garden apartment in Alfreton in May 1995. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Alfreton with 100 year plus lease were valued around £215,600. The average amount of ground rent was £45 invoiced every twelve months. The lease expired on 16 August 2087. Considering the 62 years unexpired we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.