Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Allendale. Inevitably, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Allendale have the right to extend the lease for a further ninety years in accordance with statute. Please give due attention before putting off your Allendale lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Allendale with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Allendale can be a difficult process. We recommend you procure guidance from a lawyer 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 a wealth of experience dealing with Allendale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold proprietor of a high value flat in Allendale being sold with a lease of a few days over sixty years left. Ollie informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2013 we were phoned by Mr Jude Adams who, having moved into a ground floor flat in Allendale in April 2012. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Allendale with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease finished in 2092. Taking into account 66 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
In 2009 we were approached by Ms N Thomas who, having completed a one bedroom flat in Allendale in May 1997. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Allendale with an extended lease were valued around £198,800. The mid-range amount of ground rent was £55 collected annually. The lease ran out on 7 October 2081. Taking into account 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of fees.