Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Allenton. Clearly, the term of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Allenton have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due attention before delaying your Allenton lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Allenton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Allenton,the lease extension experts 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 Allenton valuers.
During the course of the last few months Hugo, started to get near to the 80-year mark with the lease on his garden flat in Allenton. In buying his flat 19 years previously, the lease term was of little significance. by good luck, he realised he needed to take steps soon on a lease extension. Hugo arranged for a lease extension just under the wire in August. Hugo and the freeholder ultimately agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the premium would have increased by a minimum £1,075.
In 2013 we were called by Dr T Lefèvre who, having purchased a one bedroom flat in Allenton in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Allenton with a long lease were in the region of £206,200. The average ground rent payable was £60 invoiced every twelve months. The lease concluded on 26 January 2082. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Last month we were called by Mr Ethan Bell , who acquired a studio flat in Allenton in September 2004. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable premises in Allenton with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed on 9 November 2102. Considering the 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.