On the balance of probabilities where you own a flat in Allenton you actually own a long leasehold interest over your property
Leasehold residencies in Allenton with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Allenton can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.
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 Allenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold proprietor of a 2 bedroom flat in Allenton being marketed with a lease of fraction over 72 years left. Mason informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2013 we were called by Dr O Morgan who, having took over the lease of a ground floor apartment in Allenton in May 2000. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical flats in Allenton with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 14 June 2105. Considering the 80 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Last month we were called by Mr and Mrs. F Torres , who purchased a first floor apartment in Allenton in November 1997. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Allenton with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished in 2094. Given that there were 69 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.