Allendale leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Allendale will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| TSB |
Regardless of whether you are a tenant or a landlord in Allendale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Allendale valuers.
David was the the leasehold owner of a 2 bedroom flat in Allendale being marketed with a lease of fraction over 72 years unexpired. David informally approached his freeholder a well known Bristol-based freehold company for a lease extension. 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 £50 per annum. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were approached by Mr W Girard who, having purchased a studio apartment in Allendale in March 2006. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Allendale with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced per annum. The lease finished on 4 November 2078. Considering the 52 years remaining we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
Last Autumn we were e-mailed by Mr and Mrs. G Vincent , who owned a studio flat in Allendale in October 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Allendale with an extended lease were valued around £290,000. The average ground rent payable was £45 collected annually. The lease finished in 2098. Having 72 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.