The market value of a leasehold property in Allenton depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised in advance of the eighty year cut off point. Leasehold Reform legislation entitles Allenton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Allenton 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Allenton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted correspondence with the freeholder of her ground floor apartment in Allenton, Shannon initiated the lease extension process as the 80 year mark was quickly nearing. The lease extension was concluded in February 2007. The landlord’s fees were kept to an absolute minimum.
Dr C Roux moved into a recently refurbished flat in Allenton in October 1997. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Allenton with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 15 May 2094. Considering the 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2014 we were called by Dr Y Moreau who, having owned a ground floor apartment in Allenton in September 2002. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical premises in Allenton with 100 year plus lease were valued around £213,600. The mid-range ground rent payable was £60 collected annually. The lease elapsed on 26 August 2083. Having 57 years left we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.